June figures for property in Florida show more sales, higher prices and lower supply as the Sunshine State continues to attract new residents. The market for single family homes in Florida is particularly buoyant with two-digit price rises and booming sales.
The latest data issued by Florida Realtors marks the 43rd month in a row of price rises in the state. For over three and a half years now, Florida house prices have been moving upwards. The median price for single family homes reached US$203,500 in June, 10 per cent higher than 12 months earlier. Townhouse-condo properties saw a year-on-year increase of 7.9 per cent with the median price at US$152,076.
Annual price rises were even higher in some parts of Florida. In the metropolitan area (MSA) of Jacksonville, condos and townhouses went up by 19.7 per cent and single family homes by 11.6 per cent. Condo properties in Orlando-Kissimmee-Sanford MSA also experienced a big price hike with a rise of 15.8 per cent in the year to June while single family homes in Sarasota-Bradenton-North Port MSA increased by 11.4 per cent.
The latest data points to a housing market clearly orientated towards sellers. Closed sales of single family properties throughout the state rose by almost 20 per cent in the year to June, an exceptionally busy month when 27,729 were sold. Activity was lower in the townhouse-condo market in Florida, but it still showed an impressive increase in sales of 14.6 per cent compared to June 2014.
A closer look at sales in metropolitan areas in Florida shows even higher levels of activity. Sales of property in Jacksonville MSA have been particularly brisk over the last year with those of single family homes up by 26.8 per cent and condo-townhouse sales by a massive 42.3 per cent. Orlando also experienced booming sales figures with those of single family homes increasing by 27.8 per cent and those of condos by 25.6 per cent.
Further indications of a seller’s market can be seen in the low inventory levels. Despite the fact that listings have grown – those for single family homes went up by 10 per cent and for townhouse-condos by 5.2 per cent in the year to June – stock remains low. Supply for single family homes in Florida currently stands at 4.6 months and at 5.5 months for townhouse-condo properties, both below the 6-month supply level considered by many experts to indicate a balanced market.
Florida property analysts point to the employment opportunities available in Florida as one of the main factors behind the high demand for housing. The state created 226,200 jobs in the 12 months to June, an annual increase of 3.4 per cent, considerably higher than the national increase of 2.1 per cent. Florida’s unemployment rate in June stood at 5.5 per cent, slightly higher than the 5.3 per cent registered in the US as a whole.
Source: Florida Realtors, Florida Department of Economic Opportunity