Florida property prices rose yet again in March when the state saw the 75th consecutive months of more expensive housing. Both single-family homes and condo properties rose in value against a background of fast-dwindling inventory.
The Sunshine State property market has experienced steady growth. Sales and prices have risen steadily to the extent that lack of supply is now one of the biggest issues facing buyers of property.
Florida property prices in March
The latest statistics for Florida property prices from Florida Realtors show that March repeated the pattern of the previous 74 months. Median prices rose all round. Single-family homes increased by 8.2% in the year to reach US$250,800. Condo and townhouse properties in the state also went up to reach a median of US$183,000. 7% more than March last year.
Sales stalled slightly but analysts attribute the drop to lack of supply. Inventory levels for single-family homes plummeted by 7.3% in the year to March to just 3.8 months’ supply. Availability of condos and townhouses also fell to reach 5.9 months, bringing property supply across the board below the 6-month threshold considered to be a sign of a balanced market.
Despite higher Florida property prices, demand remains strong. The average time on the market for a single-family home fell to 85 days in March, down from 92 days a year earlier. Condo and townhouse properties spent even less time for sale with a drop to an average of 83 days on the market, a decrease of almost 10% compared to March 2017.
“As the ongoing supply for for-sale homes continues to tighten, it can create a cycle of frustration for homebuyers,” said Florida Realtors President Christine Hansen. “Buyer demand is high, but the shortfall of inventory, particularly around US$250,000 and under, is impacting affordability in many areas.”
Further signs of a rising market can be seen in the foreclosure market, another scenario for fast-rising Florida property prices. In March, sales of foreclosure single-family homes plummeted by 53%. Their prices, however, went up by a massive 23.4% to reach US$179,000.
(Source: Florida Realtors)