May figures for property in Florida show a market with rising indices. Sales and median prices have both increased in what experts are describing as a robust market. The only decreases can be found in inventory levels, now declining across the board, a situation that is expected to herald further rapid price rises.
The dramatic improvements in the economy and job market have been matched in the surge in sales of US property and those in Florida are no exception. Single family homes in the Sunshine State have experienced particularly dramatic changes. Median prices rose by 11.1 per cent in the year to May to reach US$200,000 and closed sales in this sector of the Florida property market went up by 7.7 per cent. Homes are also selling more quickly and the time spent on the market went down from 54 to 49 days, 9.3 per cent lower than a year ago.
The townhouse-condo property sector also presented impressive figures. Median prices went up by 9.7 per cent from May 2014 to May 2015 and now stand at US$159,000. Selling time also went down in this property sector and Florida condos now spend an average of 52 days on the market, 5.5 per cent lower than a year ago.
An indication of how fast the Florida property market is moving comes in the year-on-year change in supply. 12 months ago, supplies for single family homes stood at 5.7 months, but the dramatic drop in May this year has led Florida property experts to describe current inventory levels as “tight”. The 4.7 months’ supply for single family homes lies well below the 6-month supply considered to be balanced.
“The refrain we’re hearing from realtors in many markets is there’s not enough for-sale inventory to meet demand,” commented Andrew Barbar, President of Florida Realtors. He pointed out that the low inventory levels and the continual rise in property prices – those in May mark the 42nd month in a row – have created a seller’s market. “Sellers currently have a good opportunity in Florida’s housing market,” he said.
This concern over lack of inventory is echoed by other Florida property experts. Dr John Tuccillo, Chief Economist at Florida Realtors, believes that the property market remains robust, but “the biggest current concern is the decline in inventory”. Commenting on the figures for the Florida market in May, Dr Tuccillo said that low levels of supply were now noticeable in several price brackets. “In the past, inventory declines were concentrated in the under US$150,000 segment. Now we’re seeing declines in all segments priced below US$250,000,” he said.
New construction in Florida (and the US generally) is growing, but still remains at low levels and development projects are generally a long way from fulfilling demand. While this situation continues, inventory levels are likely to remain low and as a result, Florida property prices look set to keep rising.
Source: Florida Realtors