Florida Market Report

Welcome, please find the most recent Florida Realtors Market update brought to you by Barry Hoey & Kimberly Zuponcic PA with the Hoey Team 🍀 239RealEstateDeals.Com LLC ☘ who directly serve Southwest Florida.  Together with our network of top Real Estate Agents we serve all of Florida; which you can accurately search right here 👇

Click Here to Find Your Florida Dream Home 🌴

MAY 2021: FLORIDA HOUSING REPORT

ORLANDO, Fla., June 22nd, 2021 – from Brad O'Connor Ph.D. Florida Realtors
May turned out to be a very interesting month in Florida's resale housing market, at least according to the latest market statistics from Florida Realtors. 

To start with, Florida's inventory of existing single-family homes listed for resale actually *increased* over the course of the month, rising from 31,618 as of the end of April up to 32,021 by May 31.

Sure, that's only a little over a one percent increase, but it's significant because this is the first time Florida's single-family inventory has increased during any month since March of 2020.

On top of that, it comes on the heels of only a very slight month-over-month statewide decline of just 40 single-family listings during April.

So that's two consecutive months where our single-family inventory has been relatively stable.

Of course, we are still down over 58 percent compared to a year ago, so we are by no means out of the woods in terms of the housing shortage-but we can at least take this flattening inventory curve as a sign that we might finally be at the start of a long march back toward balanced market.
One major reason the decline in single-family inventory has halted is that the number of existing homes being listed for resale each month generally continues to be in line with recent historical norms prior to the pandemic.

During May, we saw 34,298 single-family homes come onto the market, which is only 179 fewer new listings than we had in May of 2018, and just 212 more than we had in May of 2019.
At the same time, the number of single-family homes going under contract each month, which has been well above historical pre-pandemic norms since June of last year, has been slowly but surely trending back toward those norms in each successive month of 2021.

In January, for example, the statewide number of homes that went under contract was roughly 30 percent higher than what we saw in January of both 2018 and 2019.

In May, by comparison, new single-family contracts were only 7.5 percent above what we saw in May of 2018, and just 2.4 percent above what we saw in May 2019.

Naturally, this reversion toward historical norms in the level of contract signings is a strong indicator that monthly counts of closed single-family home sales will also move back toward more normal levels, and this appears to have started in earnest in May.

Statewide, we only had *243* more single-family closings than we did two years ago in May of 2019. Now, that's a little misleading because May of 2019 was an unusually strong month for closed sales, but if we compare instead to either May of 2018 or 2017, we were still only up a little over 10 percent this May.

And of course, thanks to rising home prices and the greater abundance of luxury sales we have in the current market, the statewide dollar volume of closed sales this May greater than that of May 2019's closings, even though they were similar in number.Speaking of prices, the median sale price for closed single-family home sales was up again in May, rising to nearly $345,000.

That's a 2-and-a-half percent increase from April's median and whopping 28 percent increase year-over-year. As always, it's important to note that the greater share of luxury sales we have this year versus a year ago is part of the reason for this huge year-over-year increase, but overall home price appreciation is also a big component of this growth.

Half of the single-family homes that sold in May were only on the market for 9 days before going under contract, and over half of all closed single-family home sales were sold above their original listing prices. That said, this upward price pressure is the most likely reason we are seeing new contracts and closings starting to revert toward more normal levels.

The market mechanism is working. Mortgage rates remain above where we started this year, and although they are currently in a holding pattern with the 30-year fixed rate hovering around 3 percent, the general consensus is that they will be higher by the end of the year.

Assuming that's correct-which is in no way a sure thing-then we can start expecting the rate of price growth to finally cool down a little.
Over in the condo and townhouse category, which has been running very hot in terms of sales this year, we also saw a slight reversion toward historical norms in May, but we are still way above those levels, with almost 27 percent more sales than we had in May of 2019.

The median sale price in this property category came in at an even $250,000, which is where it was in April and is 24 percent above where it was one year ago.
Now that we've covered the statewide numbers, it would be a good time for you to check out your local stats, as well.

We've noticed some interesting things in the local data at different price levels this month.

For example, cash sales as a share of overall single-family sales have been on the rise, but not everywhere and not in every price tier.

Areas with large luxury markets like Southwest Florida are seeing a rise in cash sales simply because luxury buyers are more likely to pay in cash, and there's been a greater share of luxury purchases this year.

On the other hand, in the state's major population centers, we've seen an uptick in the share of cash sales in some of the mid-level price tiers.

But that's not necessarily the case in many other parts of the state.
So, to get the latest info on your market, be sure to go check out our other resources on this website. www.239RealEstateDeals.Com

 

Please inquire for more information and feel free to share this update with others. 

 

Thanks 

Barry & Kim with the Hoey Team  🍀 239RealEstateDeals.Com LLC

 

Barry Hoey, REALTOR®, GRI

Full time Real Estate Broker Owner

 

Kimberly Zuponcic PA, Realtor

Full time Real Estate Sales Associate

 

Buying-Selling-Leasing-Relocation-International

 

"Your Real Estate Concierge"

 

Barry@SWFLLuxury.Com

 

Call/Text the Hoey Team:  (239)-360-5527

239RealEstateDeals.Com LLC

 

Search USA:   http://HoeyTeam.239RealEstateDeals.Com/app.php

 

Search Florida:    www.HoeyTeam.239RealEstateDeals.Com

 

Senior Living www.SRESAgent.com

Hoey Team   Exclusive SW FL Listings; Watch 3D Tours 24/7:    www.SWFLVRE.com 

Hoey Team   Exclusive SW FL Listings:   www.SWFLLuxury.Com  

Hoey Team   Southwest Florida Luxury Collection:   www.SWFLLuxuryCollection.Com 

Check out this video for an overview of this Powerful Upgraded Website and how you can Use the Many Different Features; making this Your One Stop Shop to find Accurate Information and Research All of Florida & Beyond.

 

FloridaRealtors


In the U.S., closing costs, including taxes, were up 10.5% year-to-year, and almost $7K for an average price home. In Fla. it’s a bit higher: $8.5K for the average home.
Florida Realtors economist: Real estate’s residential side has been on fire since summer 2020. How has the commercial side fared? It’s hot – and it’s not. It depends on where you look. The delta variant of COVID-19 slowed the office market even as it relit a fire under other commercial sectors.
The head of Citizens Property Insurance calls losses among all state insurers “absolutely staggering.” He blames the marketplace itself, saying it impacts every company.
The U.S. will increase loan caps for multifamily housing by 11.4% next year, and 50% of the $156B total ($140B this year) must go to “mission-driven affordable housing.”
A new 40-page report takes a broad view on steps being taken to mitigate risks, including possible HUD and VA buyer disclosures on flood and climate-related threats.
While stories about multiple offers and foregone inspections are pervasive, a study found that most buyers won by their second bid and 88% had a home inspection.
Average mortgage rates continue to hover around 3%, but they’ve slowly ticked higher. This week, the 30-year, fixed-rate mortgage averaged 3.05%.
In response to the Surfside condo collapse, Fannie Mae says its condominium loan decisions after Jan. 1 will include a stronger look at the overall condo building. Loan decisions will consider current or planned special assessments and any deferred maintenance issues.
Officials say Canadians can start returning in early Nov. if they’re fully vaccinated. One twist: It’s unclear if that includes Canadians who got two different vaccines.
Loan limits will likely go up to $625K in 2022, but FHFA hasn’t announced it yet. Still, higher home values have convinced some lenders to boost loan limits now.
In 3Q, the number of U.S. foreclosures surged 67% year-to-year as homes exited forbearance and bans ended. But compared to “normal” 3Q 2019, they’re down 60%.
The U.S. birth rate is the lowest it’s been in more than 100 years, and pregnant homeowner couples are a top reason buyers decide to upgrade to a large house.
The Biden Admin. wants a $500K limit for like-kind exchanges, which allow investors to defer taxes. If enacted, the change could have a big impact on commercial RE sales.
How can the state mitigate condo disasters following the tragedy in Surfside? A Fla. Bar task force pulled together experts and submitted its recommendations on Tues. In Sept., Realtors outlined the problems condo buyers face getting important docs, suggesting better records and tighter oversight.

Areas We Cover