ORLANDO, Florida., June 21, 2022 /PRNewswire/ — Rising mortgage interest rates, high inflation and still tight inventory levels have been factors florida housing market in May, with fewer closed sales compared to a year ago, according to the latest housing data from Florida Realtors®.
“Households everywhere are feeling the pinch of high inflation,” said the president of 2022 Florida Realtors Christina Papas, vice president of the Keyes Family of Companies in Miami. “Homebuyers are also facing the challenges of rising interest rates and tighter inventories of homes for sale, forcing some to hit the pause button on their plans., the median time to contract for existing single-family homes in May was nine days – the same as in May 2021. Last month, the median time to contract for existing condominium and townhouse units was 10 days, up from 19 days a year ago.
“Real estate market conditions are constantly changing, but buyers and sellers can turn to a local real estate agent for expertise, knowledge and support.”
Last month, closed sales of single-family homes statewide totaled 28,861, down 6.9% year-over-year, while sales of condo-existing townhouses totaled 13 265, down 14.4% from May 2021, according to data from the Florida Realtors Research Department in partnership with local realtor councils/associations. Closed sales can take place 30 to more than 90 days after the drafting of the sales contracts.
Rising mortgage interest rates continue to depress existing home sales in FloridaAccording to Florida Realtors Chief Economist Dr. Brad O’Connorwho added that the current level of sales is more comparable to the pre-pandemic years of 2018 and 2019 than to sales in 2021, when mortgage rates were still near all-time lows.
“This slowdown in the pace of sales was accompanied by an increase in the rate of homes put up for sale in May,” he said. “New single-family home listings rose 10.2% year over year – the largest such increase since August last year. New townhouse and condo listings rose more modestly, by 3.4%.
Dr O’Connor explained: “With sales levels approaching historical norms and new listings rising in May, inventory levels are also beginning to rise. The number of single-family homes actively listed for sale in Florida at the end of May was up more than 23% compared to the end of April and 31.5% compared to a year ago. However, townhouse and condominium inventory rose nearly 16% month-over-month, but was still down 20.5% year-over-year.
“Remember that inventory in every category – single family homes and also for condominium properties – has remained at a very low level for some time, which means we are still deep in seller’s market territory. But we’re starting to see some progress towards a balanced market.”
The statewide median sale price for existing single-family homes in May was $420,000, up 21.8% from the previous year. Last month’s statewide median price for condominium apartments was $322,000, up 28.8% over the previous year. The median is the midpoint; half of the houses sold more expensive, the other half cheaper.
On the supply side of the market, inventory (pending listings) of existing single-family homes showed some year-over-year improvement in May; this was a 1.4 month supply compared to a 1.1 month supply a year ago. Condominium townhouse inventory was at 1.5 months supply in May.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 5.23% in May, significantly higher than the average of 2.96% in the same month a year earlier.
To see full reports on housing activity statewide, go to the Florida Realtors Newsroom at http://floridarealtors.org/newsroom and look under Latest versions or download the May 2022 PDF data report under Market Data at: http://floridarealtors.org/newsroom/market-data.
Realtors in Florida® is the voice of real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 225,000 members in 51 councils/associations. Realtors in Florida® The newsroom website is available at http://floridarealtors.org/newsroom.
Florida Realtors SOURCE