2023-05-01 06:00:11
The Florida real estate market posted higher inventory for sale (active listings) and higher median sales prices in the first quarter of 2023, especially in March, compared to the prior year, according to housing data from Florida Realtors .
“Buyers in Florida remain challenged by mortgage rates above 6% and economic pressures like inflation,” said G. Mike McGraw, president of the firm and associate broker at RE/MAX Central Realty in Orlando.
He added that more active listings mean buyers have more options when selecting a home, which could help moderate the pace of price rises and alleviate affordability issues.
For his part, Dr. Brad O’Connor, chief economist at Florida Realtors, commented that the drop in closed sales of single-family homes in March was an improvement over the 33% and 21% drops seen in January and February, respectively. That’s also the case when looking at the smaller drop in closed sales of condos and townhomes in March compared to the previous two months.
During the first quarter of 2023, existing single-family home sales statewide totaled 59,554, 22% less than in the first quarter of 2022, while statewide existing condo and townhome sales totaled 24,931, 30.5% less than the same quarter a year ago.
With respect to statewide median sales price for existing single-family homes in March was $405,000, up 2.1% from the prior year, according to data from the Florida Department of Realtors Investigation. The state median price last month for condominium and townhome units was $320,000, up 3.9% from the prior year figure.
“Although mortgage rates have remained high year-to-date, they have also generally fallen in a constant range. Consistency alone can be a comforting factor on the demand side of housing, reducing potential buyers’ sense of uncertainty and making them more comfortable returning to the market,” O’Connor said.
O’Connor said Florida continues to be a hotspot for residential purchases by both in-state and out-of-state buyers, and buyers are finding significantly more available inventory than last year.
“Inventory remains well below pre-pandemic levels in most areas of the Florida market. New listings continue to be somewhat weak compared to recent years, which helps keep prices stable, but also puts a cap on how much additional inventory we could potentially see in the coming months.”
On the supply side of the market, inventory (active listings) rose in the reference period: Existing single-family homes had a 2.7-month supply, while condo and townhome inventory had a 3.4-month supply for both terms.
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