Florida Realtors data: But for-sale inventory rose and median sales prices up year-over-year. Single-family homes up 15.7% to $402,500; condos up 21.6% to $306,500.
ORLANDO, Fla. – As 2022 ended, Florida’s housing market looked similar to the more traditional market years prior to the pandemic in terms of total closed sales, though it fell short in the year-to-year compared to the unusually strong 2021 sales. The statewide inventory of for-sale existing homes and condo properties showed gains while statewide median sales prices continued to rise year-over-year, despite headwinds from inflation and higher interest rates, according to the latest housing data released by Florida Realtors®.
2022: Market Feels Effects of Inflation, Rate Hikes
As 2022 ended, Florida’s housing market looked similar to the more traditional pre-pandemic market years in terms of total closed sales, though it fell short in the year-to-year compared to the unusually strong 2021 sales.
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Year End 2022
Florida Realtors®Chief Economist Dr. Brad O’Connor pointed out that in 2021, Florida’s housing market was “on a sugar high. Overall, closed sales in 2022 were pretty good when you look at the more ‘traditional’ housing market years of 2018 and 2019.”
At the end of 2022, statewide closed sales of existing single-family homes totaled 287,352, down 18% compared to the 2021 year-end level, according to data from Florida Realtors’ research department in partnership with local Realtor boards/associations. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The statewide median sales price for single-family existing homes at year’s end was $402,500, up 15.7% from the previous year. The median is the midpoint; half the homes sold for more, half for less.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 125,494 units sold statewide in 2022, down 21.7% compared to 2021. The statewide median price for condo-townhouse properties at the end of the year was $306,500, up 21.6% from the previous year.
Statewide, the median percentage of the original listing price received by sellers at the end of 2022 continued at about the same level year-over-year in both property type categories at 100% for single-family existing homes and at 99.9% for condo and townhouse units.
According to Florida Realtors’ data, at the end of 2022, in December 2022 and also in 4Q 2022, inventory (active listings) for single-family homes stood at a 2.7-months’ supply, while inventory for condo-townhouse properties was at a 2.8-months’ supply.
“The good news is, we have a lot more inventory than what we had over the pandemic years,” O’Connor said. “Active listings of single-family existing homes more than doubled from a 1-month supply at the end of 2021 to a 2.7-months’ supply at the end of 2022. If we get a little relief in mortgage rates, then all the other factors are still there that make Florida appealing and a strong draw for buyer demand.”
December 2022
In December, closed sales of single-family homes statewide totaled 19,158, down 36.1% from December 2021, while existing condo-townhouse sales totaled 7,677, down 40% year-over-year, according to Florida Realtors’ data.
The statewide median sales prices for both existing single-family homes and condo-townhouse properties rose year-over-year in December 2022. The statewide median sales price for single-family existing homes was $395,000, up 5.6% from the previous year. Meanwhile, the statewide median price for condo-townhouse units was $310,000, up 8.8% over the year-ago figure.
4Q 2022
Statewide closed sales of existing single-family homes totaled 57,004 in the fourth quarter of 2022, down 33.1% compared to the previous-year figure, according to Florida Realtors’ data. The statewide median sales price for existing single-family homes for 4Q 2022 was $400,000, up 9.6% from 4Q 2021.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses in 4Q 2022, a total of 23,117 units sold statewide, down 35.5% from the same quarter in 2021. The statewide median price for condo-townhouse properties for the quarter was $310,000, up 14% over the previous year.
Looking ahead in 2023, Chief Economist O’Connor said mortgage rates – and the Federal Reserve’s action on interest rates as it continues to fight inflation – will influence ongoing market conditions.
He said, “Over the next six months, if mortgage rates don’t rise and return to 7%, that would help encourage buyers – and I think we’ll see mortgage rates stay just above 6% for a while. If we keep seeing more good news on the economic front, then I think we’ll see the housing market respond. Buyer demand is there, perhaps waiting on easing home prices, more supply and other factors.”
To see the full statewide housing activity reports, go to the Florida Realtors’ Newsroom and look under Latest Releases or download the December, 4Q or Year End 2022 data report PDFs under Market Data on the site.
© 2023 Florida Realtors®
FAQs
Florida Realtors data: But for-sale inventory rose and median sales prices up year-over-year. Single-family homes up 15.7% to $402,500; condos up 21.6% to $306,500. ORLANDO, Fla.
Are home prices dropping in Florida? ›
While prices dropped modestly between the end of summer 2022 and spring 2023 during the so-called correction of the housing market, they've since started to climb back, albeit at a much slower pace than they had in the previous three years.
Is it better to buy a house when interest rates are high or low? ›
A high-interest-rate climate gives you less buying power, so buyers who opt to wait for lower rates may find themselves able to afford a higher-priced house, due to the lower mortgage payments.
How will a recession affect the housing market in Florida? ›
Home prices might also change during a recession. While the cost of financing a home typically rises when interest rates rise, home prices may fall. Fewer people compete for the same home inventory because there is less demand and fewer buyers.
Will rising interest rates affect the housing market? ›
When the Fed increases rates to slow down the economy, particularly in times of inflation, the above goal is what it's looking for; a reduction in consumer spending that results in a drop in prices. Conversely, when interest rates drop, the cost of buying a house becomes cheaper, which increases the demand for housing.
Is now a bad time to buy a home in Florida? ›
Florida Housing Market Conditions
The current real estate market conditions in Florida are becoming favorable for home buyers. Here's how: Lower Mortgage Rates: The interest rates for home loans have decreased to 7.01%, marking a decline from approximately 8% in the preceding year of 2023.
Is it good to buy house during recession? ›
This decreased demand means less competition for homes on the market, which in turn means sellers who are more open to lowering their prices. So buying during a recession, if you are financially able to, may get you a better deal.
Will mortgage rates ever be 3 again? ›
It's possible that rates will one day go back down to 3%, though if current trends hold that's not likely to happen anytime soon.
Is it better to put more money down on a house or buy down interest rate? ›
If you are buying a home and have some extra cash to add to your down payment, you can consider buying down the rate. This would lower your payments going forward. This is a particularly good strategy if the seller is willing to pay some closing costs.
Is it a good time to buy when interest rates are high? ›
Pros. Home prices and interest rates could keep rising, so while rates are higher than they were a few years ago, you might get a better deal now than if you wait. With fewer buyers shopping right now due to higher costs of borrowing, you might have more negotiating power.
Because a decline in disposable income affects prices, the prices of essentials, such as food and utilities, often stay the same. In contrast, things considered to be wants instead of needs, such as travel and entertainment, may be more likely to get cheaper.
Should I sell my house now or wait until 2024? ›
Best Time to Sell Your House for a Higher Price
April, June, and July are the best months to sell your house in California. The median sale price of houses in June 2023, was $796,400, which is expected to grow more in 2024. However, cities like Arcadia and San Mateo follow an upward trend throughout the year.
What is the prediction for real estate in Florida for 2024? ›
According to Zillow, home price appreciation is expected to slow down significantly in the coming years, with a predicted increase of only 3.4% for 2024. This could provide relief to buyers who have been priced out of the market in recent times.
Is it better to buy a house when interest rates are high? ›
The bottom line. Today's elevated mortgage rate environment isn't preferable for homebuyers, but it doesn't mean that you should refrain from acting, either. If you discover your dream home, can afford the interest rate, find an affordable house, or have an alternative to rent, it can be worth it for you now.
Will 2024 be a good year to buy a house? ›
NAR forecasts that sales will rise by 13 percent in 2024. “Housing sales are expected to increase a bit from this year,” agrees Chen Zhao, who leads the economics team at Redfin. “However,” she qualifies, “we are not expecting sales to increase dramatically, as rates are likely to remain above 6 percent.”
Will inflation cause a housing crash? ›
However, as high inflation costs press down on buyers, it could depress home values. Although he doesn't expect a major housing market crash, Buehler says he sees home values flattening out as inflation nestles into the housing market.
Will 2024 be a good time to buy a house? ›
With the current trend in the CA housing market, you'll find better deals on your dream home during Q2 2024. As per Fannie Mae, mortgage rates may drop more in Q2 of 2024 due to economic changes, inflation, and central bank policy adjustments.
Is buying property in Florida a good investment? ›
“Florida's economy has been growing steadily over the past few years, with low unemployment rates and a strong job market,” Locklear said. “This means that there is a high demand for housing, making it a good time to invest in real estate.
Why are homes not selling in Florida? ›
This combination of increased housing supply for sale—the damaged homes, combined with strained demand, the resulting spiked home prices, spiked mortgage rates, higher insurance premiums, and higher HOAs—has translated into market softening across much of Southwest Florida.
Why is Florida homes getting so expensive? ›
Wrapping Up High Real Estate Costs in Florida
Limited land availability, high demand for housing, construction costs, and government fees all contribute to the highly priced real estate market. The median sales price of 2022 was $403,880 [1], pricing out lower-income families and the smaller real estate investor.
