Home prices keep rising in Florida as low supply and high demand collide
Home prices keep rising in Florida as low supply and high demand collide.
Florida Realtors housing data shows that the median price of a single-family existing home was $250,800 in March, up 8.2% year-over-year. Townhouse-condos reached a median of $183,000 statewide, up 7%.
"As the ongoing supply of for-sale homes continues to tighten, it can create a cycle of frustration for homebuyers, especially those trying to become a first-time homeowner," said 2018 Florida Realtors President Christine Hansen, broker-owner with Century 21 Hansen Realty in Fort Lauderdale.
"If move-up buyers can't find a home in their desired price range, then they aren't likely to leave their current home, which in turn makes entry-level properties even more scarce. Buyer demand is high, but the shortfall of inventory – particularly around $250,000 and under – is impacting affordability in many areas,” she added.
"Single-family home sales were down 3.5% year-over-year in March, the largest such drop in over a year – excluding, of course, last September when Irma briefly shut down the housing market," said Florida Realtors Chief Economist Dr. Brad O'Connor. "We shouldn't ignore, however, that March of 2017 was an unusually strong month for closed sales, so from the start, the odds were already stacked against any substantial year-over-year sales growth taking place this March.
Year-to-date home sales are down less than 1% year-over-year though so April sales figures will be closely watched.
