Florida Real Estate Market Overview
The Florida real estate market has been experiencing an upward swing since February of 2022, with an increase in inventory and higher median prices compared to the same time last year. However, economic uncertainty, inflation, and fluctuating interest rates above 6% have impacted the state’s real estate sector, resulting in a decline in closed sales of single-family homes and existing condo-townhouses.
Decline in Closed Sales
According to recent statistics, there was a 21.3% year-over-year decline in closed sales of single-family homes statewide in February 2022, and a 30.2% year-over-year decline in closed sales of existing condo-townhouse units in the same month. This decline can be attributed to the economic uncertainty brought about by the pandemic, inflation, and fluctuating interest rates that have made it difficult for buyers to invest in real estate.
Increase in Inventory in Florida
Despite the decline in closed sales, the Florida housing market has shown some positive signs. There has been a 131.4% year-over-year increase in inventory for existing single-family homes in February 2022, and a 106% year-over-year increase in inventory for existing condo-townhouse units in the same month. Inventory constraints have eased in many markets across the state, relieving some pressure on home prices and helping buyers deal with affordability challenges.
Median Sales Price
The median sales price for single-family existing homes in February 2022 was $395,000, up 3.5% from the previous year. For condo-townhouse units, the median sales price in February 2022 was $315,000, up 8.6% over the same time last year. These statistics indicate a slow build of for-sale homes on the market that will ease inventory constraints, ultimately helping buyers deal with affordability challenges.
Impact of Realtors
President G. Mike McGraw of Florida Realtors® believes that working with a local Realtor is essential to understanding the complex and emotional process of buying or selling a home. They help consumers navigate the rising interest rates and affordability challenges while explaining the benefits of buying versus renting a home. Realtors® play a significant role in the Florida real estate market, providing essential support and guidance to buyers and sellers alike.
Florida Real Estate Market Outlook
In conclusion, the Florida real estate market has continued to strengthen despite the impact of the pandemic, inflation, and fluctuating interest rates on the state’s economy. The increase in inventory and median prices, along with the support of local Realtors, is painting a hopeful picture for a more stable future in Florida’s housing market. By working together, buyers, sellers, and Realtors can help ensure that the Florida housing market continues to thrive in the years to come.