Fla.'s Housing Market: Median Prices, Inventory Continue to Rise in 2Q 2019

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Aug 07, 2019, 11:05 ET

ORLANDO, Fla., Aug. 7, 2019 /PRNewswire/ -- Continuing a trend from the first three months of the year, Florida's housing market reported higher median prices and rising inventory in 2Q 2019, according to the latest housing data released by Florida Realtors®. Closed sales of single-family homes statewide totaled 85,017 in 2Q 2019, up 4.6% from the 2Q 2018 level.

"Median sales prices for both existing single-family homes and for condo-townhouse properties rose in Florida during the second quarter – and that's a trend we've been experiencing for quite some time," said 2019 Florida Realtors President Eric Sain, a Realtor and district sales manager with Illustrated Properties in Palm Beach.

"Florida continues to attract new residents and businesses. In fact, our population is growing by about 906 new residents every day, or more than 300,000 people a year – that's like adding a city about the size of Orlando every year, according to a recent report from state economists. This population growth, a current unemployment rate of 3.4% and a favorable jobs outlook continue to keep Florida's economy strong."

The statewide median sales price for single-family existing homes in 2Q 2019 was $265,000, up 3.3% from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $195,000, up 2.9% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida's condo-townhouse market, statewide closed sales totaled 34,128 during 2Q 2019, down 1.4% compared to 2Q 2018. Closed sales typically occur 30 to 90 days after sales contracts are written.

"Low mortgage rates drove a major improvement in sales in the second quarter, which was more than enough to compensate for the rocky start we had at the beginning of the year," said Florida Realtors Chief Economist Dr. Brad O'Connor. "So, right now, we are on pace with our initial forecasts for 2019. Prices will continue to rise at a more traditional pace, and we will need to keep an eye on single-family inventory levels, as they are reverting to their lows of last year."

In 2Q 2019, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 41 days for single-family homes and 52 days for condo-townhouse properties.

Inventory was at a 3.9-months' supply in the second quarter for single-family homes and at a 5.7-months' supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.0 percent for 2Q 2019, down from the 4.54 percent average recorded during the same quarter a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center at http://media.floridarealtors.org/ and look under Latest Releases, or download the 2Q 2019 data report PDFs under Market Data at: http://media.floridarealtors.org/market-data

Florida Realtors® serves as the voice for real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 187,000 members in 51 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

SOURCE Florida Realtors