Florida Housing Market Analysis - August 2024
The Florida housing market in August 2024 presents a nuanced picture, with several key indicators showing both positive and negative trends compared to the previous year. This analysis delves into the various metrics to provide a comprehensive overview of the current state of the market.
Median Sales and List Prices
The Median Sales Price for homes in Florida stands at $402,500, reflecting a slight decrease of 1.7% year-over-year (YoY). Conversely, the Median List Price has seen a modest increase of 1.3% YoY, now at $431,000. This divergence suggests that while sellers are optimistic, buyers are negotiating prices down, possibly due to increased inventory and longer market times.
Price Per Square Foot
The median Price Per Square Foot for sold homes is $252, down by 1.5% YoY. On the other hand, the Median List Price per square foot has risen by 2.4% YoY to $270. This indicates that while sellers are asking for more per square foot, the final sale prices are not meeting these expectations, likely due to market dynamics and buyer resistance.
Sales and Inventory
Home sales have experienced a significant decline, with 31,734 Homes Sold, marking a 6.0% drop YoY. Pending Sales have also decreased sharply by 11.7% YoY, totaling 33,857. New Listings have remained relatively stable, with a slight decrease of 0.7% YoY, amounting to 42,532. However, inventory has surged by 40.4% YoY, reaching 148,011 homes. This substantial increase in inventory has led to a rise in the Months of Supply, now at 4.7 months, a 160.0% increase YoY. The higher inventory levels and longer supply duration indicate a shift towards a buyer's market.
Market Dynamics
The Median Days on Market have increased by 18.0% YoY, now averaging 61 days. This extended market time further underscores the cooling demand and increased supply. The average sale to list ratio has slightly decreased by 0.6% YoY, now at 96.8%, indicating that homes are selling for slightly less than their listed prices. Additionally, the percentage of Homes Sold above list price has dropped by 4.6% YoY to 10.9%, reflecting reduced competition among buyers.
Price Adjustments and Off-Market Trends
Price Drops have become more common, with 30.8% of listings experiencing reductions, up by 4.1% YoY. This trend suggests that sellers are adjusting their expectations to align with market realities. Furthermore, the percentage of homes going off-market within two weeks has decreased by 11.8% YoY, now at 22.0%, indicating that homes are taking longer to sell.
Conclusion
In summary, the Florida housing market in August 2024 is characterized by increased inventory, longer market times, and a slight decline in Median Sales Prices. While sellers remain optimistic with higher list prices, the final sale prices and extended days on market suggest a shift towards a more balanced or even buyer-favorable market. Buyers have more options and negotiating power, while sellers may need to adjust their expectations to achieve successful transactions.
