Florida Home Prices Rise in September

RISMEDIA, Monday, October 24, 2016— Regional Spotlight—Florida’s housing market reported increased median prices, more new listings and fewer all-cash closed sales in September, according to the latest housing data from Florida Realtors®.

Tight inventory continues to impact the state’s housing market, notes Florida Realtors® Chief Economist Brad O’Connor. Closed sales of single-family homes statewide totaled 22,704 last month, slightly down (0.5 percent) from September 2015. Meanwhile, in the townhouse-condo market, statewide closed sales totaled 8,818 last month, down 3.9 percent compared to a year ago.

“Florida’s economy continues to grow, resulting in improving jobs and incomes for workers across the state,” says 2016 Florida Realtors® President Matey H. Veissi, broker and co-owner of Veissi & Associates in Miami. “In turn, that is generating interest from many would-be buyers who are ready to enter the housing market. However, the latest data shows that a continued lack of inventory—especially in the mid-$200,000 and under range—is affecting those potential homebuyers, leaving them with limited choices and higher prices as a result.”

Similar to previous months, inventory was at a 4.2-months’ supply in September for single-family homes and at a 5.8-months’ supply for townhouse-condo properties, according to Florida Realtors®.

Once again, home sellers continued to get more of their original asking price at the closing table in September: Sellers of existing single-family homes received 96.2 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.8 percent (median percentage).

The statewide median sales price for single-family existing homes last month was $222,500, up 11.3 percent from the previous year, according to data from Florida Realtors® research department in partnership with local Realtor® boards/associations. The statewide median price for townhouse-condo properties in September was $160,000, up 6.7 percent over the year-ago figure.

In September, statewide median sales prices for both single-family homes and townhouse-condo properties rose year-over-year for the 58th month in a row, Veissi notes.

Closed sales data reflected fewer short sales and cash-only sales in September. Short sales for single-family homes declined 33.8 percent, while short sales for townhouse-condo properties dropped 27.2 percent.

“Even though the number of Florida single-family home sales in September was essentially the same as last year, the composition of this year’s group was quite different —and in a good way,” says O’Connor. “Distressed sales made up only 10 percent of single-family home sales this September, compared to over 19 percent in September 2015, and only 28 percent of sales were all-cash deals this time around, compared to 34 percent last year.

“If our housing markets are going to return to some se3mblance of what many might term ‘normalcy,’ it’s vital that both of these trends continue,” O’Connor adds.

For more information, visit www.floridarealtors.org.

NABOR Market Report: 3Q Prices Hold Steady – Inventory Rising

Naples, Fla. (October 20, 2016) – The Naples Area Board of REALTORS® (NABOR®) released its Third Quarter 2016 Market Report, which tracks home listings and sales within Collier County (excluding Marco Island), and it showed overall inventory increased 40 percent with little change in median closed prices. In fact, as reflected in the report, the overall median closed price for homes on the market increased only 4 percent to $312,000 in the 3Q of 2016 from $300,000 in the 3Q of 2015. This was predominately driven by a 9 percent increase in the $300,000 and below price category. Comparatively, all other price categories saw a zero or negative price adjustment.

Upon reviewing the report, NABOR® President and Broker Associate with Berkshire Hathaway Home Services Florida Realty Rick Fioretti said, “a quick analysis of price behavior since December of 2015 shows median closed prices leveled out.” Several broker experts agreed with Fioretti, adding that the pricing trend is a natural reaction to the increase in inventory.

“I think we’re seeing the completion of a cycle that began in 2013,” said Cindy Carroll, SRA, with the real estate appraisal and consultancy firm Carroll & Carroll, Inc. “Prices have remained relatively stable for over a year, and now I’m noticing more competitive value-based pricing as the supply increases.”

Carroll remarked that her business encounters a small herd of listings that are still not moving, and believes ongoing increases in inventory over the next six months will require these sellers to adjust their value perceptions. “The list to sale price ratio is shrinking and this needs to continue if we want to compete with new home construction.”

While both pending and closed sales decreased 14 percent (quarter over quarter), inventory continued to rise in all areas of Collier County during the 3Q of 2016. Overall, inventory rose 40 percent to 5,044 homes in the 3Q of 2016 from 3,606 homes in the 3Q of 2015; with a marked increase in Central Naples, which rose 49 percent to 608 homes in the 3Q of 2016 from 408 homes in the 3Q of 2015.

Inventory increases in the condominium market were also remarkable during the third quarter of 2016. This home type experienced a 53 percent increase in inventory to 2,375 condominiums in the 3Q of 2016 from 1,557 condominiums in the 3Q of 2015.

The NABOR® 3Q 2016 Market Report provides comparisons of single-family home and condominium sales (via the Southwest Florida MLS), price ranges, and geographic segmentation and includes an overall market summary. The NABOR® 3Q 2016 sales statistics are presented in chart format, including these overall (single-family and condominium) findings:

“Only 23 percent of homes for sale under $300,000 are single-family residences,” said Brenda Fioretti, Managing Broker at Berkshire Hathaway HomeServices Florida Realty. “When it’s priced right, it sells.”

NABOR® also released its September 2016 Market Report, which showed activity in September 2016 compared to activity in September 2015 was a mixed bag. For example, while overall pending and closed sales decreased 12 and 19 percent, respectively, median closed prices held steady or decreased in 73 percent of the market in September. In fact, median closed prices for all homes above $500,000 decreased, with a 12 percent decrease occurring in the $2 million and over price category.

The NABOR® September 2016 sales statistics are also presented in chart format, including these overall (single-family and condominium) findings: