Florida Housing Market Continues to Trend Upward with Rising Prices and Reduced Inventory

Florida Housing Market Continues to Trend Upward with Rising Prices and Reduced Inventory

ORLANDO, FL - Florida's housing market continued to show increased strength in June, including more closed sales of single-family homes, more new listings, rising median prices and a reduced inventory of homes for sale, according to the latest housing data released by Florida Realtors.

"It's encouraging to see median prices continuing to recover in areas across the state," said 2013 Florida Realtors President Dean Asher, broker-owner with Don Asher & Associates Inc. in Orlando. "Strong buyer demand, along with the tight supply of for-sale homes, is putting upward pressure on prices. June marks the 18th consecutive month that we've seen the statewide single-family home median sales price increase year-over-year.

"On average, sellers received about 94 percent of their asking price in June. Interested home sellers are paying attention to this positive trend. Statewide, new listings for single-family homes increased 10.8 percent in June, while new townhome-condo listings rose 4.7 percent."

Statewide closed sales of existing single-family homes totaled 20,403 in June, up 8.6 percent compared to the year-ago figure, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

Meanwhile, pending sales – contracts that are signed but not yet completed or closed – for existing single-family homes last month rose 23.1 percent over the previous June. The statewide median sales price for single-family existing homes last month was $175,000, up 15.1 percent from the previous year.

According to the National Association of Realtors® (NAR), the national median sales price for existing single-family homes in June 2013 was $214,700, up 13.2 percent from the previous year. In California, the statewide median sales price for single-family existing homes in June was $428,510; in Massachusetts, it was $350,050; in Maryland, it was $284,841; and in New York, it was $242,475.

The median is the midpoint; half the homes sold for more, half for less. Housing industry analysts note that sales of foreclosures and other distressed properties downwardly distort the median price because they generally sell at a discount relative to traditional homes.

Looking at Florida's year-to-year comparison for sales of townhouse-condos, a total of 9,136 units sold statewide last month, slightly less than the June 2012 level (down 2.5 percent). Meanwhile, pending sales for townhouse-condos last month increased 14.2 percent compared to the year-ago figure. The statewide median for townhouse-condo properties was $130,000, up 18.2 percent over the previous year. NAR reported that the national median existing condo price in June 2013 was $210,200.

The inventory for single-family homes stood at a 5-months' supply in June; inventory for townhouse-condos was at a 5.2-months' supply, according to Florida Realtors.

"The rest of the country is finally catching on to the fact that Florida's real estate market is growing significantly," said Florida Realtors Chief Economist Dr. John Tuccillo. "For the past two years, we've been up month-over-month in closed sales. The significant part of this month's numbers is the growth in new listings, suggesting that the inventory crunch will ease in the second half of this year."

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.07 percent in June 2013, up from the 3.68 percent average recorded during the same month a year earlier.

To see the full statewide housing activity reports, go to Florida Realtors Media Center.

Source: Florida Realtors / #Housing #Economy

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