Florida Housing Path Remains Encouraging
September 5, 2017 | nella
Florida’s residential real estate market remained on an encouraging path in the second quarter of this year with an increase in closed sales, increased median prices and a higher number of pending sales, according to the most recent housing market data released by Florida REALTORS®. Closed sales of single-family homes statewide totaled 79,888 in 2Q 2017, an increase of 3.7 percent over 2Q 2016 data.
“Florida’s economy and jobs outlook continued to grow in the second quarter of this year,” says 2017 Florida REALTORS® President Maria Wells. “State officials just reported that among all states, Florida had the third-fastest annual private-sector job growth rate in the nation.” The state’s unemployment rate was 4.1 percent in June, better than the U.S. unemployment rate of 4.4 percent, according to the Bureau of Labor Statistics. Proving that Florida is more than a destination state, these positive economic factors drive Florida’s housing market forward. Pending sales for single-family homes over the three-month period increased by 1.4 percent year-over-year, while condo-townhouse pending sales increased by 2.7 percent.
“However, a shortage of for-sale homes continues to hamper sales, as buyer demand outweighs available inventory in many local markets. Working with a Realtor in their area enables consumers to better understand local market conditions and navigate the complexities of buying or selling a home.”
The statewide median sales price for single-family existing homes in 2Q 2017 was $240,000, up 9.1 percent from the same time a year ago. The statewide median price for condo-townhouse properties during the quarter was $175,000, up 7.4 percent over the year-ago figure.
With regard to Florida’s condo-townhouse market, closed sales across the state totaled 32,827 during 2Q 2017, up 3 percent compared to 2Q 2016. Traditional sales for condo-townhomes increased by 7.7 percent while single-family home traditional sales increased 9.8 percent.
“We continue to see a tale of two markets in Florida,” said Florida REALTORS® Chief Economist Dr. Brad O’Connor. “Homes on the more affordable end of the spectrum remain squarely in sellers’ market territory, and the sale prices we’re seeing for these homes continue to rise at a faster rate than we’re seeing in other segments of the housing market.”
“The market for higher-end homes, comparatively, is ripe for the picking by potential homebuyers. Home values in this range are generally on the rise as well, but at a more traditional pace. From a value perspective, the biggest winners in the housing market right now might be homeowners looking to trade in their starter homes for something more substantial, given the shrinking price differential between these housing tiers.”