Fla.'s Housing Market Shows Rising Median Prices in Sept. 2016

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Oct 20, 2016, 11:05 ET

ORLANDO, Fla., Oct. 20, 2016 /PRNewswire/ -- Florida's housing market reported more new listings, increased median prices and fewer all-cash closed sales in September, according to the latest housing data released by Florida Realtors®.

Tight inventory continues to impact the state's housing market, noted Florida Realtors® Chief Economist Brad O'Connor. Closed sales of single-family homes statewide totaled 22,704 last month, slightly down (0.5 percent) from September 2015. Meanwhile, in the townhouse-condo market, statewide closed sales totaled 8,818 last month, down 3.9 percent compared to a year ago.

"Florida's economy continues to grow, resulting in improving jobs and incomes for workers across the state," said 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. "In turn, that is generating interest from many would-be buyers who are ready to enter the housing market. However, the latest data shows that a continued lack of inventory – especially in the mid-$200,000 and under range – is affecting those potential homebuyers, leaving them with limited choices and higher prices as a result."

Once again, home sellers continued to get more of their original asking price at the closing table in September: Sellers of existing single-family homes received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $222,500, up 11.3 percent from the previous year, according to data from Florida Realtors research department in partnership with local Realtor boards/associations. The statewide median price for townhouse-condo properties in September was $160,000, up 6.7 percent over the year-ago figure.

In September, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 58th month in a row, Veissi noted. The median is the midpoint; half the homes sold for more, half for less.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in August 2016 was $242,200, up 5.3 percent from the previous year; the national median existing condo price was $225,100. In California, the statewide median sales price for single-family existing homes in August was $526,580; in Massachusetts, it was $375,000; in Maryland, it was $278,578; and in New York, it was $257,291.

Closed sales data reflected fewer short sales and cash-only sales in September: Short sales for single-family homes declined 33.8 percent while short sales for townhouse-condo properties dropped 27.2 percent. Closed sales may occur from 30- to 90-plus days after sales contracts are written.

"Even though the number of Florida single family home sales in September was essentially the same as last year, the composition of this year's group was quite different –and in a good way," said Florida Realtors® Chief Economist Brad O'Connor. "Distressed sales made up only 10 percent of single family home sales this September, compared to over 19 percent in September 2015. And only 28 percent of sales were all-cash deals this time around, compared to 34 percent last year.

"If our housing markets are going to return to some semblance of what many might term 'normalcy,' it's vital that both of these trends continue."

Similar to previous months, inventory was at a 4.2-months' supply in September for single-family homes and at a 5.8-months' supply for townhouse-condo properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.46 percent in September 2016, significantly lower than the 3.89 percent average recorded during the same month 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 September 2016 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 155,000 members in 55 boards/associations. Florida Realtors® Media Center website is available at http://media.floridarealtors.org.

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SOURCE Florida Realtors