Florida’s housing market reported more single-family home sales and higher median prices, as well as increased pending sales and pending inventory in November 2019 compared to a year ago, according to the latest housing data released by Florida Realtors.
Sales of single-family homes statewide totaled 21,842 last month, up 6.1% from November 2018.
“The November data shows that many home buyers are eager to find the Florida home of their dreams – but demand and a tight inventory in many local areas continues to put pressure on prices,” said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach. “Last month, new pending sales rose 14.4% for single-family existing homes while new pending sales for condo-townhouse units increased 8.6%.
Statewide median sales prices for both single-family homes and condo-townhouse properties in November rose year-over-year for the 95th consecutive month. The statewide median sales price for single-family existing homes was $265,000, up 3.9% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $195,000, up 5.4% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
In the condo-townhouse market in October, statewide closed sales totaled 8,101, down 6.3% from the level a year ago. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
According to Florida Realtors Chief Economist Dr. Brad O’Connor, Florida’s housing market is feeling the pressure of a lack of housing supply. The latest data shows that the number of existing homes listed for sale in Florida continued to decline on a year-over-year basis in November, he said.
“By the end of the month, the statewide inventory of on-market single-family homes was down 10.5% compared to a year ago, while the number of listed condos and townhouses was down just over 7%,” O’Connor said. “These declines were not driven by market conditions in any particular part of the state, either. Single-family inventory was down year-over-year in all but two of Florida’s 22 metro areas, while condo and townhouse inventory declined to varying degrees in all but three of these areas.”
He noted that the size of these declines is partially attributable to the fact that, last fall, mortgage rates were ticking upward toward levels not seen since 2011.
“This shift, along with other factors, brought about greater listing activity from homeowners and investors, and resulted in the state’s first real upward trend in inventory since 2013,” O’Connor said. “But then mortgage rates started to decline again at the end of the year and into this year – which means that in current year-over-year comparisons, today’s inventory is being measured against last year’s brief inventory surge, which is why the one-year drop seems so steep.
“The main takeaway is that we had a one-year reprieve from a worsening inventory shortage, but that reprieve is now over. The underlying fundamentals of the shortage – insufficient new construction and a lack of listing activity from existing homeowners – are still with us and will be for some time to come.”
