Real Estate & Development
Florida Home Inventory & Sales Prices
How are home sales in the Sunshine State amid the pandemic? Based on Florida’s recent monthly sales data, July 2020 demand was strong. Florida REALTORS® data for July 2020 indicates a 2.5 months supply of single-family homes on the market. This low level of supply reflects a strong sellers’ market for single-family homes.
Demand Strong For Single-Family Homes
The supply of home inventory is a popular way to evaluate housing market conditions. The 2.5 months of supply is Florida’s lowest single-family home inventory recorded during the last 13 month period. July 2020’s month supply is down -34.2 % compared to a year ago in July 2019 (3.8 months supply). According to Florida REALTORS®, “inventory remains scarce and is an area of concern, particularly in the single-family existing home category.”
What Is A Balanced Housing Market?
“Months Supply of Inventory” (MSI) is described as follows by Florida REALTORS® :
“MSI is a useful indicator of market conditions. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. Anything higher is traditionally a buyers’ market, and anything lower is a sellers’ market.”
Florida Homes’ Median Sales Price
Florida’s single-family home median sales price in July 2020 was $295K, up 10.1% compared to a year ago in July 2019 ($268K). Whereas the average Florida single-family home sales price was $409,295 in July 2020, up 14.9% compared to a year ago in July 2019 ($356,173).
“I caution that these year-over-year percentage increases may be slightly overstated, as many higher-priced market areas that are normally cooling down this time of year are unusually active because their peak seasons were pushed back (due to the pandemic),” said Florida REALTORS® Chief Economist, Dr. Brad O’Connor.
“But most of these increases truly can be attributed to home price appreciation being driven by lower mortgage interest rates inducing greater demand. When rates go down, you can afford a higher-priced home – but then again, so can competing buyers, so we’re definitely seeing prices getting bid upward,” according to Dr. O’Connor.
Florida Condos & Townhouses
How’s the Florida condo and townhouse supply? It’s more than twice the supply of single-family homes. In July 2020, Florida’s active listings of condo-townhouses inventory reflected a 5.6-month supply. (A year ago back in July 2019, the supply was 5.5 months.)
The median sales price of a Florida condo-townhouse in July 2020 was $210K, up 11.7% (as compared to a year ago in July 2019 at $188K). Whereas the average sales price of a Florida condo-townhouse was $290,398 (up 12.8% compared to a year ago in July 2019 at $257,516).