Market Update for June 2022 With Brad O’Connor Ph.D.
Brad O’Connor directly addresses camera:
Closed sales of existing single-family homes in Florida are continuing to underperform in 2022 compared to a year ago, according to the latest monthly statistics from Florida Realtors.
Single-family home sales in June were down over 17% year-over-year, the largest such decline we’ve seen so far this year. There were an unusually high number of sales in June of 2021, even compared to other months in 2021, so that’s part of the reason for such a large decline. Still, there’s no denying that this year’s much higher mortgage interest rates are taking a toll on the housing market not only here in Florida, but across the rest of the country, as well. Nearly 21% fewer single-family homes went under contract in June compared to a year ago, as well, indicating that we’re going to be seeing lower numbers of closings for the next couple of months and likely well beyond.
The level of closed sales we’ve seen in recent months is similar to that of what we had in 2018 and 2019, before the pandemic, but this is a very different market now because homes are listed at significantly higher prices and inventory levels remain much lower than before.
That said, things are really starting to change on the inventory front. New listings of single-family homes were up by over 13% year-over-year in June. Combined with the flagging number of homes going under contract, this led to a hefty increase in end-of-month inventory. The number of homes actively listed for resale at the end of June was about twice as large as what was available four months prior at the end of February. If this current rate of change in single-family inventory continues on through the rest of the summer, we could very well be back at pre-pandemic inventory levels by the beginning of fall.
The median price for single-family home sales closing in June was $420,000. That’s up by nearly 20% compared to a year ago, but notably, it was unchanged compared to the median price one month ago in May. This marks the first time that Florida’s single-family median sale price has failed to increase from May to June since 2008, an indication that prices are starting to respond to the growing level of inventory available to buyers. Half of the single-family home sales that closed in June were only on the market for 10 days or less before going under contract, which is higher than in June of last year, when half the homes were selling in 8 days or less. But 10 days is still a really short amount of time by historical standards and indicates that homes are still moving quickly when priced appropriately.
Over in Florida’s resale market for condos and townhouses, meanwhile, we saw some even more dramatic shifts in sales than in the single-family market. Closed sales of condos and townhouses fell by 27% year-over-year, and new sale contracts were down by over 30%, as well. Remember, though, that 2021 was the year of the condo.
Sales of homes in this category were absolutely through the roof last year, even compared to single-family homes, which had a great year as well. The level of condo and townhouse sales, despite these large year-over-year declines, actually remains above the levels we saw in 2018 and 2019, although this gap is slowly shrinking each month as we continue through 2022. New listings of condos and townhouses were only up by less than 5% in June, with months supply of inventory rising to 1.9 months the same as in the single-family category.
The median sale price for condos and townhouses was up 26.4%, to just under $325,000. Those are the statewide numbers, of course, but what about your local market? Is it seeing the same trends? It’s easy to find out if you’re a member of Florida Realtors. Just go to sunstats.floridarealtors.org and log in to view the latest market data for your area. We have the whole state covered down to the city- and ZIP Code-level. Thanks for watching! I’ll see you next month.