Florida Realtors: Sunshine State’s Housing Market Had Strong August But Inventory Levels Still Rebuilding

Florida’s housing market reported higher median prices, more new listings and a rise in all-cash sales in August compared to a year ago, according to the latest housing data from the Florida Realtors.

“The data shows that new listings continue to increase, which is hopeful news for buyers who may have been waiting to see more for-sale inventory come on the market,” said Florida Realtors President Cheryl Lambert, a broker-owner with Only Way Realty Citrus in Inverness. “New listings for single-family homes in August rose 10.6 percent year-over-year, while new listings for condo-townhouse properties increased 1.4 percent. Still, it’s likely to take some time before inventory levels rebuild.”

Closed sales of single-family homes statewide in August totaled 29,550, up slightly (0.2 percent) year-over-year, while existing condo-townhouse sales totaled 12,550, up 13.1 percent over August 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

The statewide median sales price for single-family existing homes last month was $354,000, up 18 percent 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 $252,500, up 16.1 percent over August 2020. The median is the midpoint; half the homes sold for more, half for less.

Florida Realtors Chief Economist Dr. Brad O’Connor noted that while closed sales of single-family homes were up by only a fraction of a percentage point compared to a year ago, “that increase remains impressive given the rate at which homes were selling at this time last year. The market for condos and townhouses, however, remains the hotter market for now.”

In a continuing trend, the share of closed sales that were all-cash purchases rose last month compared to the previous year. In August, single-family existing home sales paid in all cash increased by 48.3 percent year-over-year, while all-cash sales of condo-townhouse units rose by 32.9 percent.

On the supply side of the market, inventory (active listings) remained constrained in August.

“Inventory levels at the end of August were not much different than they were at the end of July, but are still well below where they were a year ago,” O’Connor said. “Active listings (inventory) of single-family homes were down 32.4 percent year-over-year, while active listings of condos and townhouses were down 52.4 percent.”

Single-family existing homes continued at a very low 1.3-months’ supply in August, while condo-townhouse inventory was at a 1.7-months’ supply.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 2.84 percent in August 2021, down from the 2.94 percent averaged during the same month a year earlier.

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