TALLAHASSEE, Fla. – Florida TaxWatch (FTW) released A Rising Tide Sinks All Homes: The Effects of Climate Change on Florida’s Economy, a 56-page report developed to better understand climate change’s potential costs and consequences on each of the 11 industries that comprise Florida’s economy.
Wednesday, November 24, 2021
Tuesday, November 23, 2021
By Marla Martin
Florida Realtors’ data: Demand, low inventory impact prices. Single-family home median sale price up 17.7% to $358,950, condo median price up 17.6% to $260,000.
ORLANDO, FL – Florida’s housing market showed higher median prices, more cash sales and tight inventory levels in October compared to a year ago, according to Florida Realtors® latest housing data.
“In markets across the state, the for-sale inventory continues at low levels, and that puts pressure on prices and also impacts closed sales – some buyers may have paused their home search for now,” says 2021 Florida Realtors President Cheryl Lambert, broker-owner with Only Way Realty Citrus in Inverness. “Last month, the median time to a contract was 12 days for single-family homes and 15 days for condo-townhouse properties.” The median time to contract is the midpoint of the number of days it took for a property to receive a sales contract during that time.
The statewide median sales price for single-family existing homes in October was $358,950, up 17.7% from the previous year, according to data from Florida Realtors Research Department in partnership with local Realtor boards/associations. Last month’s statewide median price for condo-townhouse units was $260,000, up 17.6% over October 2020. The median is the midpoint; half the homes sold for more, half for less.
However, closed sales of single-family homes statewide last month totaled 27,628, down 6.8% year-over-year, while existing condo-townhouse sales totaled 11,433, down 5.6% from October 2020. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
“In 2020, Florida’s housing market had perhaps the best second half of any year in recent memory,” says Erica Plemmons, Florida Realtors economist and director of housing statistics. “Part of this was due to the shifting spring buying season: The onset of the COVID-19 pandemic pushed a lot of sales that would have occurred in spring, back into the late summer and fall. But other factors were at play as well, including record-low mortgage rates, changes in consumers’ housing preferences, and the demand pressure from continued movement of millennials into their prime home-buying years.”
Here in the second half of 2021, the Florida housing market still has many of these demand drivers in place. So, while sales were down year-over-year, she explained that “if we compare this October’s home sales to two years ago, before the pandemic, they were up over 18%. Similarly, condo and townhouse sales, while down 5.6% year-over-year, were still up 23% compared to October 2019.”
In a continuing trend over the past few months, the share of closed sales that were cash purchases rose last month compared to the previous year. In October, single-family existing home sales paid in cash increased by 25.4% year-over-year, while cash sales of condo-townhouse units rose by 6.5%.
On the supply side of the market, new listings and inventory (active listings) remained restricted last month.
“Low inventory levels continue to hold back the market,” says Plemmons. “At the end of October, single-family inventory (active listings) was 29.9% lower than it was a year ago, while condo and townhouse inventory was down 54% year-over-year.”
Single-family existing homes were at a low 1.3-months’ supply in October, while condo-townhouse properties were at a 1.6-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.07% last month, up from the 2.83% averaged during October 2020.
To see the full statewide housing activity reports, go to Florida Realtors Tools and Resources. Realtors also have access to local market data (password protected) through Florida Realtors SunStats resource.
© 2021 Florida Realtors®
Monday, November 22, 2021
Tuesday, November 16, 2021
By Kerry Smith
By Jeff Lazerson
Monday, November 8, 2021
Baby Boomer Challenge: Find a Home for Downsizing
The inventory for homes smaller than 1,400-square feet has hit a 50-year low – and it’s the same record-low inventory eyed by many first-time buyers.
NEW YORK – Too much yard, too much cleaning? Older homebuyers shopping for a smaller home that’s easier to maintain struggle to find enough possibilities in today’s housing market. It makes downsizing increasingly difficult.
Housing inventories for homes up to 1,400 square feet have fallen to a 50-year low, according to Freddie Mac, even as a growing number of young couples and aging seniors are competing for them. Price growth has been highest for smaller, less expensive homes, says Len Kiefer, deputy chief economist at Freddie Mac.
With so few homes available in that category, baby boomers may have to change their expectations when downsizing.
“We have a housing shortage,” Lawrence Yun, chief economist at the National Association of Realtors®, told The Wall Street Journal. “Clearly from the age patterns, young people want to upsize, and the older generation is looking to downsize, but not greatly – only 100 or 200 square feet smaller than where they’d been living.”
About 28% of real estate transactions in 2020 were for people looking to downsize, Yun says. Most of those transactions were for buyers aged 55 or older. However, some baby boomers choose to age in place and retrofit their current homes so they can stay there longer.
Higher costs could also mean more seniors carry mortgage debts. The number of older homeowners with debt increased from 33.2% in 2007 to 55.4% in 2019, and most of the increase is attributed to mortgage debt, according to the Urban Institute.
Source: “As Boomers Downsize, Competition Grows for Simpler – but Not Always Smaller – Homes,” The Wall Street Journal (Oct. 31, 2021) [Log-in required.]
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Friday, November 5, 2021
NEW YORK – Of Americans who moved during the pandemic, 85% opted to move within their state, according to a new analysis from LendingTree, which evaluated mortgage loan data from March 1, 2020, to Sept. 21, 2021, to learn pandemic moving patterns.
Wednesday, November 3, 2021
By Amber Randall
Tuesday, November 2, 2021
What International Buyers are Looking for in the Florida Market
By Kerry Smith