Fla. Realtors chief economist: “Florida weathered the storm” of higher interest rates and ongoing inflation making 2023, a “rough year for residential real estate.”
By Marla Martin
ORLANDO, Fla. – As 2023 ended, Florida’s inventory of for-sale existing homes and condo properties showed gains over 2022, while statewide median sales prices continued to rise year-over-year despite higher interest rates and ongoing inflation, according to the latest housing data released by Florida Realtors®.
Year End 2023
“2023 was a rough year for residential real estate here in the U.S. and around the world, as central banks continued to raise interest rates to combat inflation, though Florida weathered the storm fairly well,” said Florida Realtors® Chief Economist Dr. Brad O’Connor. “The state’s economy churned out new jobs at one of the highest rates of any state, and throughout the year, both retirees and working-age adults and their families continued to move here in droves from elsewhere in the country. Both of those factors helped mitigate some of the dampening effect that high mortgage rates had on homebuyer demand in 2023, but they weren’t enough to keep home sales from declining.”
Statewide closed sales of existing single-family homes at the end of the year totaled 257,679, down 10.3% compared to the 2022 year-end level, according to data from Florida Realtors’ research department in partnership with local Realtor boards/associations. For existing condo-townhouses, a total of 105,411 units sold statewide in 2023, down 16% compared to 2022. Closed sales may occur from 30- to 90-plus days after sales contracts are written.
O’Connor pointed out, “Like the rest of the country, Florida remained mired in a housing shortage throughout 2023, although inventory (active listings) levels at the end of the year were higher than where they started by 17.8% for single-family homes and 52.6% for condos and townhouses. However, inventory remains below pre-pandemic levels and while the balance has shifted somewhat toward buyers as of late, we solidly remain in seller’s market territory.”
He added that “the amount of housing supply remains too limited and the demand for housing in Florida remains too strong to support any sort of significant home price correction any time soon.”
The statewide median sales price for single-family existing homes at year’s end was $410,000, up 1.9% from the previous year. The statewide median price for condo-townhouse properties at the end of the year was $322,500, up 5.2% from the previous year. The median is the midpoint; half the homes sold for more, half for less.
Florida Realtors’ data showed that at the end of 2023, in December 2023 and also in 4Q 2023, inventory (active listings) for single-family homes stood at a 3.6-months’ supply, while inventory for condo-townhouse properties was at a 5.1-months’ supply.
December 2023
In December, closed sales of single-family homes statewide totaled 18,423, down 3.8% from December 2022, while existing condo-townhouse sales totaled 7,202, down 6.2% year-over-year, according to Florida Realtors’ data.
The statewide median sales prices for both existing single-family homes and condo-townhouse properties rose year-over-year in December 2023. The statewide median sales price for single-family existing homes was $410,000, up 3.8% from the previous year. Meanwhile, the statewide median price for condo-townhouse units was $330,000, up 6.5% over the year-ago figure.
4Q 2023
Statewide closed sales of existing single-family homes totaled 55,874 in 4Q 2023, down 2% compared to the previous-year figure, according to Florida Realtors’ data. The statewide median sales price for existing single-family homes for the quarter was $410,805, up 2.7% from 4Q 2022.
Looking at Florida’s year-to-year comparison for sales of condo-townhouses in 4Q 2023, a total of 22,425 units sold statewide, down 3% from the same quarter in 2022. The statewide median price for condo-townhouse properties for the quarter was $325,173, up 4.9% over the previous year.
Looking ahead, O’Connor said, “I expect to see continued improvement in the rate of sales as we go forward in 2024, now that mortgage rates have likely peaked and there’s a good possibility of the Federal Reserve starting to cut rates in the coming months.”
© 2024 Florida Realtors®
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