NAR: Existing-home sales cool in Jan. as inventory remains low.
ORLANDO, Fla. – Feb. 23, 2015 – Florida's housing market had higher median prices, more new listings and a continued stabilization of inventory in January, according to the latest housing data released by Florida Realtors®.
"Home price gains in areas across Florida mean that home equity continues to improve and that, coupled with historically low interest rates, generates a great opportunity for sellers," says 2015 Florida Realtors President Andrew Barbar, a broker with Keller Williams Realty Services in Boca Raton. "Many homeowners who have been on the sidelines are now ready to list their properties for sale: Statewide, new listings for single-family homes in January rose 7.9 percent year-over-year, while new townhouse-condo listings rose 1 percent."
Looking at Florida's townhouse-condo market, statewide closed sales totaled 7,294 last month, down slightly (-1.7 percent) compared to January 2014. That closed sales data reflected fewer short sales in January: Short sales for condo-townhouse properties declined 57.9 percent while short sales for single-family homes dropped 39.4 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
"The major features of the market – prices and inventory – have settled into a path that will be characteristic of the whole year," says Florida Realtors Chief Economist Dr. John Tuccillo.
"But there are some interesting wrinkles in the detailed numbers," Tuccillo adds. "First, inventories for both single-family homes and townhouses and condos are shrinking, a sign of a continuing need for supply in the less than $250,000 area of the market. Right now, new construction remains the best option for households of moderate income. Adding to this is the continuing rapid decline in short sales, an ongoing trend that is likely to continue.
"Secondly, the percentage of condo sales accounted for by cash dropped dramatically in January. This shows the impact of a strengthening dollar on foreign demand, as well as the continuing decline in market participation by volume investors."
Inventory was at a 5.3-months' supply in January for single-family homes and at a 6.2-months' supply for townhouse-condo properties, according to Florida Realtors.
To see the full statewide housing activity reports, visit Florida Realtors' website under "Research."
Association members (login required) also have access to local data specific to their market.