ORLANDO, Fla., June 21, 2022 /PRNewswire/ — Rising mortgage rates, high inflation and still tight inventories were factors affecting this Floridas Real estate market in May, with fewer completed sales compared to a year ago, according to the latest real estate data from Florida Realtors®.
“Households everywhere are feeling the pinch of high inflation,” said 2022 Florida Realtors President Christina Pappas, Vice President of the Keyes Family of Companies in Miami. “Homebuyers are also facing challenges from rising interest rates and tight inventory of homes for sale, leading some to put their plans on hold. Still, The average lease term for existing single-family homes was nine days in May – the same as in May May 2021. The average time to deal for existing townhouse condos last month was 10 days compared to 19 days last year.
“Real estate market conditions are always changing, but buyers and sellers can turn to a local agent for expertise, knowledge and support.”
Last month, closed single-family home sales nationwide totaled 28,861, down 6.9% from a year earlier, while existing townhouse condo sales totaled 13,265, down 14.4% May 2021, according to data from the Florida Realtors Research Department in conjunction with local realtor boards/associations. Completed sales can occur 30 to over 90 days after the purchase agreements are closed.
Rising mortgage rates continue to weigh on existing home sales FloridaAccording to Florida Realtors chief economist Dr. Brad O’Connorwho added that current sales levels are more comparable to the pre-pandemic years of 2018 and 2019 than sales in 2021, when mortgage rates were still near all-time lows.
“This slowdown in the sales rate was accompanied by a surge in properties for sale in May,” he said. “New single-family home listings rose 10.2% year-on-year – the largest such increase since August last year. New townhouse and condo listings rose more modestly by 3.4%.”
dr O’Connor explained, “As sales figures get closer to historical norms and new listings increase in May, inventories are also starting to rise. The number of single-family homes that are actively listed for sale Florida At the end of May, it was over 23% higher than at the end of April and 31.5% higher than a year ago. However, the inventory of townhouses and condos rose nearly 16% month-over-month but still declined 20.5% year-over-year.
“Remember that inventory in every category – single family homes and also condos – has been at very low levels for some time, which means we’re still deep in seller territory. But we’re starting to see some progress back towards a balanced market.”
The nationwide median selling price for existing single-family homes in May was $420,000, up 21.8% year-on-year. The last month’s nationwide average price for a townhouse condo was $322,000, up 28.8% year-on-year. The median is the midpoint; Half of the houses sold for more, half for less.
On the supply side of the market, the inventory (active listings) of existing single family homes in May showed some improvement from a year earlier; it was a 1.4 month supply compared to a 1.1 month supply a year ago. The stock of condominiums and townhouses was 1.5 months in stock in May.
According to Freddie Mac, the interest rate on a 30-year fixed-rate mortgage averaged 5.23% in May, well above the average of 2.96% in the same month last year.
To see the full statewide housing activity reports, go to the Florida Realtors Newsroom at http://floridarealtors.org/newsroom and see or download Latest Releases May 2022 Data report PDFs under Market Data at: http://floridarealtors.org/newsroom/market-data.
Florida real estate agent® serves as the voice for real estate in Florida. It offers programs, services, continuing education, research and legislative representation to its 225,000 members in 51 committees/associations. Florida real estate agent® Newsroom website is available at http://floridarealtors.org/newsroom.
SOURCE Real Estate Agents in Florida