Even as the pandemic continues into 2022, Florida’s housing market reported more closed sales and rising median prices compared to a year ago, according to Florida Realtors’ latest housing data. Single-family existing home sales were up 1.4% last month compared to January 2021.
“2022 began with market conditions similar to what we saw over the previous months, including high buyer demand and a lack of inventory in many areas across the state,” said 2022 Florida Realtors President Christina Pappas, vice president of the Keyes Family of Companies in Miami. “This shortfall in inventory continues to put pressure on home prices. When homes are available for sale, they’re going under contract very quickly: The median time to contract statewide for single-family existing homes in January was 14 days compared to 21 days during the same month a year ago. And the median time to contract for existing condo-townhouse units was 16 days compared to 39 in January 2021.”
Last month, closed sales of single-family homes statewide totaled 21,885, up 1.4% year-over-year, while existing condo-townhouse sales totaled 10,252, up 6.7% over January 2021. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
The statewide median sales price for single-family existing homes was $375,000, up 23% 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 $285,000, up 23.9% over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
According to Florida Realtors Economist and Director of Housing Statistics Erica Plemmons, analysts will be watching mortgages rates in the coming months to weigh their impact on market conditions.
“The strong uptick in the 30-year fixed mortgage rate, means John and Jane Doe need to cross their t’s and dot their i’s before signing on the dotted line,” she said. “A home price that they could afford at 3%, may not be as comfortable at 3.5 or 4%. Still, there’s a strong incentive to purchase a home as rents are also rising.
“As we get more data for 2022, we will have a better understanding of how much of Florida’s demand could ease as interest rates likely increase to levels homebuyers haven’t seen in three years.”
On the supply side of the market, inventory (active listings) continued to be limited in January. Single-family existing homes were at a very restricted 1.0-months’ supply while condo-townhouse inventory was at a 1.2-months’ supply.
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.45% in January 2021, significantly higher than the 2.74% averaged during the same month a year earlier.
To see the full statewide housing activity reports, go to the Florida Realtors Newsroom at http:// floridarealtors.org/newsroom and look under Latest Releases or download the January 2022 data report PDFs under Market Data at: http://floridarealtors.org/newsroom/market-data.