Florida Realtors recently released data giving us a Florida housing market update from January. Overall, the market was steady. The number of closed sales was up 2.7 percent from January 2015, median prices rose 13.7 percent from 2015, while inventory of houses for-sale tightened.
“Florida’s housing market remains on a steady path,” says 2016 Florida Realtors President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “While inventory levels are tight, the months’ supply of homes for sale remains stable and distressed property sales continue to fall. The current market offers a great opportunity for sellers, who are getting nearly 94 percent (for existing single-family homes) of their asking price at the closing table; existing townhouse-condo sellers are getting more than 93 percent of their asking price. And while mortgage rates are inching higher, they remain historically low, which gives consumers more buying power.”
Not every part of the housing market increased, but it was still steady, which is a good thing.
“Overall, statewide sales growth remained slow in January, but it’s important to note that this trend has not been uniform across all price points,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “Taking a closer look at the data, what we are seeing are large year-over-year declines in properties selling for less than $150,000. Sales in this price range, which comprised over a third of January’s total sales, were down by nearly 17 percent compared to January 2015. Sales of homes in price tiers of $150,000 or more, on the other hand, were actually up over 14 percent, year-over-year.
“An overall rise in home values is partly responsible for these contrasting trends,” adds O’Connor, “but the real culprit is a lack of inventory in lower price tiers that has resulted from high rates of investor activity and conversions into rentals.”
So, your Florida housing market update is that things are steady, but inventory is low and tightening further. If you have your eye on a home in Miami, contact a RE/MAX Paradise agent ASAP to make it yours!