The value of Florida real estate hit a historical high in June. The average price of a residential property grew to USD 416,000 last month, which is 13.4% more than a year earlier. This value keeps increasing although the number of potential buyers is now smaller.
The purchasing power of Florida residents is dropping. Statistics show that in June, this indicator reduced by 5.4% compared to the previous month and by 14.2% compared to last year. “Higher real estate prices are still affecting potential home buyers,” says Lawrence Yun, Chief Economist at the National Association of Realtors (NAR). “Both mortgage rates and housing value surged too rapidly over a short time.”
A report recently published by NAR shows that residential property became less affordable, as mortgage payments increased by 51% over a year. Meanwhile, the average household income grew by only 4.5% over the same time.
Nevertheless, not all buyers are backing down. The number of listed homes is increasing and well-to-do people purchase them quickly. According to NAR, residential properties were selling at record rates this June. “Homes at fair prices are selling very fast,” Yun says.