Several reports were published last week, demonstrating that the Florida real estate market remains strong despite the unfavorable conditions in the US economy as a whole.
Specifically, a report by Florida Realtors says that 287,352 single-family houses were sold in this state in 2022, which is 18% below the 2021 level. The year 2021 was record-setting, but the sales are generally quite active. Last year’s performance was solid compared to “regular” years.
Matin Real Estate analyzed the difference between the outstanding mortgage amount and the market value of the mortgaged property. Florida is No. 4 in the USA by this indicator, second only to Arizona, Idaho, and Vermont. This is partially caused by the growing value of real estate in Florida. For instance, the median selling price of single-family houses in the existing homes market reached $402,500 by the end of the year, which is 15.7% higher than last year.
The report by Florida Realtors also shows that the supply of available single-family houses (i.e. the number of sales listings) equals 2.7 months, and the supply of condominiums, 2.8 months. Brad O’Connor, Chief Economist at the Association, explains that the supply in the market increased relative to the pandemic period. The number of active listings more than doubled compared to the end of 2021. If mortgage rates reduce a little, the consumer demand in the real estate market will immediately recover.
Mr. O’Connor believes that in 2023, it is mortgage rates and inflation mitigation actions by the Federal Reserve System that will affect the situation the most.
Another sign that the Florida real estate market is healthy is the housing starts amount. The Sunshine State is No. 3 nationwide by this indicator with 9.8 new homes per 1,000 residents.