According to reports published this week by the National Association of Realtors and Florida Realtors, the sales of residential properties continue to decrease by double digits in Florida as the supply increases. The value of housing in this state, however, still rises.
In the USA as a whole, the sales of existing homes dropped by 22.6% year-on-year in February 2023 but increased by 14.5% month-on-month. This is the first instance of sales growth recorded over the past 12 months. The median sales price reached $363,000. Lawrence Yun, Chief Economist at the National Association of Realtors, explains this sales growth by the fact that buyers are taking every opportunity as soon as interest rates reduce even slightly.
The closed sales of single-family houses in Florida declined by 21.3% this February compared to last year (down to 18,627 transactions). The sales of townhouses and condominiums in the existing market dropped even more, down to 7,665 transactions (by 30.2%). Compared to January 2023, however, the sales grew by 26.14% and 26.11%, respectively.
The median price of single-family houses in the existing homes market meanwhile rose by 3.5% compared to last February, reaching $395,000. The median price of townhouses and condominiums grew by 8.6%, up to $316,000.
According to economic fundamentals (which are not always effective in a volatile market), house prices in Florida may soon begin to reduce as, according to the reports, the number of properties listed for sale increased compared to last year: there are now 131.4% more single-family houses (a 2.7-month inventory) and 106% more condominiums and townhouses (a 3.2-month inventory) offered for sale.
At the same time, the number of new listings for single-family houses dropped by 12.6% year-on-year, and for townhouses and condos, by 7%. According to Florida Realtors, the last time there were so few listings in February was in 2013.