top of page
  • Writer's pictureEd DiMarco MS, MA

Analysis of Florida's August Housing Market Trends: A Mixed Bag

The Florida Realtor article "Fla.’s Aug. Housing Market: Median Prices Rise" by Marla Martin discusses the performance of Florida’s housing market in August, highlighting the interplay between median prices, sales, and mortgage interest rates. The market demonstrated a rise in median prices for both single-family homes and condo-townhouse units, a pattern consistent with previous months. However, a slowdown in sales was observed, which is attributed to higher mortgage interest rates and a restricted inventory of homes for sale.


Summary:


1. Median Prices:

- The median price for single-family homes rose by 2% Year Over Year (YOY) to $415,000.

- Condo-townhouse units saw a more significant median price increase of 6.2% YOY, standing at $324,000.


2. Sales Trends:

- There was a month-over-month increase in closed sales of existing single-family homes in August, likely due to the month having more business days compared to July. However, compared to August 2022, there was a decline of 7.9% in sales.

- Similarly, sales of existing condo-townhouse units were down by 7.2% from August 2022.


3. Mortgage Interest Rates:

- Mortgage interest rates are identified as a “dominant factor” affecting sales trends. The average 30-year fixed mortgage rate over the summer was around 7%, a significant increase from the 5 to 5.5% range the previous summer.


4. Market Sentiment:

- Despite higher mortgage rates and restricted inventory hampering sales activity, the Florida Realtors President G. Mike McGraw remains optimistic. He anticipates a return to a more balanced market as housing prices stabilize and interest rates potentially moderate.


5. Dollar Volume:

- Elevated home prices have helped offset lower levels of sales concerning dollar volume, with August's dollar volume of closed existing single-family home sales at about $13.2 billion, a 4.4% decrease compared to last August.

- YTD through August, the single-family dollar volume has been about $104 billion, a significant jump from about $69 billion during the same period in 2019.


6. Supply Dynamics:

- On the supply side, single-family existing homes saw a slight increase to a 3-months’ supply, while condo-townhouse properties rose to a 3.8-months’ supply in August.


7. Overall Outlook:

- The market dynamics in August reflected a continuation of recent trends, where median prices are on the rise, but sales are slowed down due to higher mortgage interest rates and limited inventory. However, the expectation is for a more balanced market as conditions stabilize.


The article sheds light on the nuanced dynamics of Florida’s housing market, emphasizing the impact of mortgage interest rates on sales and underscoring the market’s adaptive nature amidst changing economic conditions.



bottom of page