State experiences higher median prices, a rise in all-cash sales, and constrained inventory levels
The median sales price in Florida’s housing market increased significantly in September, according to the state’s real estate industry body.
Data from industry body Florida Realtors showed that the state’s housing market posted higher median prices, a rise in all-cash sales, and constrained inventory levels in September, compared to a year ago.
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The state-wide median sales price for single-family existing homes in September was up by 18.3% to $355,000, while the median price for condo-townhouse units was $255,000, up 17.2% over September 2020.
“The September data shows that while median prices are well above their year-ago levels for both single-family and condo-townhouse properties, the rate of price growth month-to-month has slowed down quite a bit over the past few months,” said Cheryl Lambert, president of Florida Realtors and broker-owner of Only Way Realty Citrus in Inverness, Fla. “Of course, demand and a lack of inventory continue to put rising pressure on home prices. If mortgage rates start to increase more in the coming months, as many analysts predict, that could ease the intense demand we’ve been seeing.”
Meanwhile, a continuing trend saw the share of closed sales that were all-cash purchases rise last month compared to the previous year. In September, single-family existing home sales paid in all cash increased by 38.5% year-over-year, while all-cash sales of condo-townhouse units rose by 22.9%.
And on the supply side of the market, new listings and inventory remained restricted last month.
“New listings of single-family homes only increased by 2.2% year-over-year in September, the lowest increase since February 2021,” said Brad O’Connor, chief economist of Florida Realtors. “New listings of condos and townhomes, meanwhile, declined on a year-over-year basis for the first time since January, down by 7.3%. This slowdown in new listings relative to the pace of sales has resulted in our levels of inventory stalling out. While it’s good news that inventory isn’t falling again, that scenario isn’t entirely out of the cards in the coming months. In the longer run, the only way this shortage can be addressed is by building more new homes.”
