The Florida housing market is undergoing significant changes as we move into the latter half of 2024. According to Florida Realtors' latest data, rising inventory levels for active listings, along with a surge in new listings and moderating median sales prices, characterize the market dynamics in June and the second quarter (2Q) of 2024. Here are the latest trends in Florida’s housing market, touching on sales statistics, price movements, and inventory changes.
Florida Housing Market Trends – June 2024
Rising Inventory and New Listings
In June 2024, Florida's housing market witnessed a notable increase in both the supply of active listings and new listings. The influx of inventory is a response to continuing demand in the Sunshine State, where, according to Census data, over 1,000 new residents are moving to Florida each day. This demand is crucial as it maintains the state's status as a desirable destination for homeowners.
Gia Arvin, the 2024 Florida Realtors® President, emphasized the ongoing attractiveness of Florida’s economy and lifestyle. However, she pointed out that higher mortgage rates and rising prices are influencing home sales, presenting challenges for potential buyers.
For the month of June alone, closed sales of existing single-family homes totaled 23,183, marking an 11.1% decrease year-over-year. Similarly, existing condo-townhouse sales saw a significant decline of 20.5%, totaling 8,339 units compared to June 2023. The second quarter figures reveal a slightly less acute drop in single-family home sales, which totaled 74,117, down by 2.2% from 2Q 2023. The condo-townhouse segment also faced challenges, with a 9.2% decrease, resulting in 28,982 closed sales.
Sales and Pricing Dynamics
While sales are decreasing in number, the overall prices have shown resilience. The statewide median sales price for single-family existing homes in June 2024 was recorded at $427,000, reflecting a slight increase of 1.7% compared to June 2023. For the condo-townhouse market, the median price remained relatively stable at $324,900, virtually unchanged from the previous year.
Looking at the broader trend in 2Q 2024, the median sales price for single-family homes was $428,000, a growth of 2.4% year-over-year. The condo-townhouse median price saw a modest increase as well, rising by 1.5% to reach $330,000. This pricing stability is crucial in a potentially turbulent market, demonstrating that while sales may be declining, the value of homes has not drastically shifted.
Analysis of Pending Inventory
A critical metric to watch is the pending inventory, which encapsulates properties that were under contract at the month’s end. The comparison with previous years reveals a nuanced picture. For single-family homes, the gap compared to the previous year stands at -2.5%, suggesting that the number of closed sales in the upcoming months might mirror last year’s figures, assuming that contracts lead to final sales.
Conversely, the townhouse and condo market reveals a wider discrepancy with a -7.9% gap, albeit showing a more favorable trend than in recent months. Economists caution that future sales will depend on the successful transition from under-contract status to closing, which can often be uncertain.
Inventory Growth Trends
While the overall inventory is on the rise, the rate of growth appears to have slowed down, especially for new listings. Year-to-date data indicates that new single-family home listings are up by over 16%, but the June figures depict a more modest rise of 6% compared to last year. Similarly, while new townhouse and condo listings increased by over 19% year-to-date, the growth in June was only 4.6%.
The increase in inventory is significant, with single-family homes standing at a supply level of 4.6 months in June, consistent with the previous year. For condo-townhouse properties, the supply remains higher at 7.4 months, indicating a continued balance between buyer demand and available homes.
Summary
The Florida housing market as of mid-2024 presents a mixed landscape, where inventory is rising and prices are showing moderation. While the overall market for sales has seen a decline, the endurance of home values and a steady supply of listings indicate resilience in the face of economic fluctuations.
The ongoing demographic shift into Florida remains a significant driving force, yet potential buyers continue to navigate challenges presented by rising mortgage rates and prices.
Looking forward, stakeholders in the Florida housing market will closely monitor these trends, particularly how pending sales materialize and whether new listings can sustain momentum amid fluctuating economic conditions. The upcoming months may redefine the market’s trajectory, shaping the future of homeownership in the Sunshine State.
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