Florida’s housing market reported more inventory (active listings) and higher median prices in November compared to a year ago, though inflation and interest rates above 6% continued to influence buyer demand, according to Florida Realtors®’ latest housing data.
Closed sales of single-family homes statewide last month totaled 17,009, down 38.2% year-over-year, while existing condo-townhouse sales totaled 7,084, down 38.9% from November 2021, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. 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, Freddie Mac’s weekly national mortgage market survey showed the average 30-year fixed mortgage rate rose above 6% in mid-September and crested at about 7% in late October, where it remained for the next three weeks. Since then, it has fallen somewhat in response but remains above 6% – a rate level not seen since late 2008.
“The effect of these higher rates on homebuyer demand throughout the U.S. this fall was not a positive one,” he said. “Here in Florida, we could already see that conditions were worsening in response to the rise in rates above 6% in October’s housing market data. Based on those figures, it’s not surprising that the newly released November figures for closed sales from Florida Realtors exhibit similar declines – and we should probably expect similar declines in closed sales in December, as well, given that rates were at their recent peak near 7% for much of November, when many of the homes scheduled to close in December were going under contract.
“This is reflected in the year-over-year changes in new pending sales reported for November: a decline of 36.8% for single-family homes, and 42.1% drop for townhouses and condos.”
In the wake of these higher interest rates, the rate of price growth for Florida’s home sales continued to slow but remained above the long-term trend, O’Connor noted.
In November, the statewide median sales price for single-family existing homes was $400,000, up 9.6% from the previous year; for condo-townhouse units, it was $307,000, up 12.3% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
“In many local markets across the state, we’re starting to see more for-sale inventory, which gives previously frustrated buyers more opportunities,” said 2022 Florida Realtors® President Christina Pappas, vice president of the Keyes Family of Companies in Miami. “Homes in Florida continue to go under contract quickly, though the time to contract continues to increase: The median time to contract for single-family existing homes last month was 29 days compared to 11 days during the same month a year ago. The median time to contract for existing condo-townhouse units was 27 days compared to 15 days in November 2021.”
Statewide inventory was higher last month than a year ago for both existing single-family homes, increasing by 105.2%, and for condo-townhouse units, up 47.4%. The supply of single-family existing homes increased to a 2.8-months’ supply while existing condo-townhouse properties were at a 2.7-months’ supply in November.
To see the full statewide housing activity reports, go to the Florida Realtors Newsroom at http://floridarealtors.org/newsroom and look under Latest Releases or download the November 2022 data report PDFs under Market Data at: http://floridarealtors.org/newsroom/market-data.
Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its more than 225,000 members in 51 boards/associations. Florida Realtors® Newsroom website is available at http://floridarealtors.org/newsroom.