Florida Housing Market

Home Prices Hold Steady

In May 2023, the median prices for closed existing single-family home sales in Florida remained consistent with the previous year. This trend has persisted throughout the year, reflecting a stabilization in price growth. The state’s housing market has seen a slowdown in the pace of rising prices, which is good news for first-time buyers. However, high mortgage rates continue to present challenges for potential buyers.

Florida Median Home Sales Prices

The statewide median sales price for single-family existing homes in May 2023 was $419,900, slightly lower compared to May 2022 ($420,000). For condo-townhouse units, the median sales price in May 2023 was $325,000, showing a modest increase of 0.9% from the previous year. These figures indicate a stable market, with prices being determined by the balance between supply and demand.

Impact of Mortgage Rates on Inventory

Higher mortgage interest rates not only dampen sales activity but also discourage some homeowners from listing their properties. Homeowners who intend to finance another home purchase in addition to selling their current home may be deterred by these higher rates. Consequently, the number of existing homes coming onto the market remains low. This dynamic contributes to the stability of home prices in the short term.

Supply and Demand Balance

The supply side of the market saw an increase in inventory compared to the previous year. In May 2023, the supply of single-family existing homes stood at a 2.7-months’ supply, while condo-townhouse inventory reached a 3.6-months’ supply. However, these levels are far below what is typically considered a balanced market, which requires a six-month supply. The limited inventory contributes to the stable pricing observed in the Florida housing market.

Market Overview

• Average Home Value: $387,537
• 1-year Value Change: +3.2%
• Median Sale to List Ratio: 0.978 (April 30, 2023)
• Percent of Sales Over List Price: 14.7% (April 30, 2023)
• Percent of Sales Under List Price: 66.9% (April 30, 2023)
• Median Days to Pending: 21 (May 31, 2023)

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