Florida’s housing market in June recorded 26,071 closed sales of existing single-family homes, down 7.9% year-over-year, while existing condo-townhouse sales totaled 10,494, down 11% over June 2022, according to data from Florida Realtors.
The trade group also published second quarter data that showed statewide existing single-family home sales totaled 75,801, down 11.2% from the second quarter of 2022, while statewide existing condo-townhouse sales totaled 31,926, down 17.7% year-over-year.
Florida Realtors Chief Economist Dr. Brad O’Connor, attributed the decline to elevated mortgage rates, noting that typical rate on a 30-year fixed-rate mortgage rose to about 5% in June 22 after starting the year at around 3%.
“This June, by contrast, the typical 30-year fixed rate was between 6.5% to 7%,” he said. “In light of that headwind, a 7.9% year-over-year decline in closed single-family home sales is understandable. As the monthly gap between closed sales this year compared to a year ago continues to shrink, we may see sales rise year-over-year in the coming months. And if rates remain stable the remainder of this year, or especially if they start to pull back a bit, we may very likely see sales continue to trend along the seasonal path typical of pre-pandemic years, such as in 2019.”
The statewide median sales prices for single-family existing homes and condo-townhouse units in June was $420,000 and $325,000, respectively, both little changed from one year earlier. In the second quarter, Florida’s single-family median sales price was $418,000 was slightly higher (0.2%) than the same period one year earlier while the condo-townhouse median was $325,000, up 1.9% year-over-year.
“As of the end of June, single-family inventory was 13.8% higher than a year ago, but that gap will be closing rapidly in the next month or two,” added O’Connor. “Overall, we are at an inventory level that is about halfway between our pre-pandemic inventory level at this time in 2019 and our low point during the pandemic in 2021. The improvement we’ve seen in inventory levels is a sign that upward pricing pressures are moderating.”
There’s absolutely no reason why these units are being priced 200 to $400,000 more for the same exact house. Nothings changed. Builders/contractors continue price gouging. It’s literally just Covid refugees pumping the market up and many will be disappointed when they close and realize what they bought for that price.
Now sprinkle some facts about insurance companies pulling out of the state.