Florida Real Estate Market Insights for July 2024

Florida Housing Market Analysis - July 2024

The Florida housing market in July 2024 presents a mixed bag of trends, reflecting both resilience and challenges. This analysis delves into various key metrics to provide a comprehensive overview of the current state of the market.

Median Sales Price

The median sales price in Florida stands at $409,600, showing a slight decrease of 0.02% year-over-year (YoY). This marginal decline suggests a stabilization in home prices, which could be indicative of a balanced market where supply and demand are relatively aligned.

Median List Price

The median list price is currently $428,200, reflecting a YoY decrease of 1%. This decline in list prices may indicate that sellers are adjusting their expectations to align more closely with market realities, potentially making homes more affordable for buyers.

Price Per Square Foot

The median price per square foot has risen to $254, marking a 1% increase YoY. Similarly, the median list price per square foot is $269, up by 3% YoY. These increases suggest that while overall home prices may be stabilizing, the value of the space within homes is appreciating, possibly due to higher construction costs or increased demand for larger living spaces.

Homes Sold and Pending Sales

The number of homes sold in July 2024 is 32,789, which is a 2% increase YoY. This uptick in sales indicates a healthy demand for homes in Florida. However, pending sales have decreased by 4% YoY, totaling 37,376. The decline in pending sales could signal a potential slowdown in future transactions, possibly due to economic uncertainties or tighter lending standards.

New Listings and Inventory

New listings have surged by 9% YoY, reaching 43,205. This increase in new listings suggests that more homeowners are looking to sell, which could be a response to the current market conditions or a desire to capitalize on the still relatively high home prices. Inventory levels have also seen a significant rise, up by 45% YoY to 148,940. The substantial increase in inventory indicates that the market is becoming more saturated, which could lead to longer selling times and more competitive pricing.

Months of Supply

The months of supply, a critical indicator of market balance, has increased dramatically by 130% YoY to 4.5 months. This sharp rise suggests that the market is shifting towards a buyer's market, where the supply of homes exceeds demand, giving buyers more negotiating power.

Median Days on Market

The median days on market have increased by 18% YoY, now standing at 59 days. This increase indicates that homes are taking longer to sell, which could be a result of the higher inventory levels and more cautious buyer behavior.

Sale to List Price Ratio

The average sale to list price ratio is 0.97, down by 1% YoY. This slight decrease suggests that homes are selling for slightly less than their list prices, which could be a sign of increased buyer leverage in negotiations.

Sold Above List Price

The percentage of homes sold above list price has dropped by 5% YoY to 11%. This decline indicates that fewer homes are experiencing bidding wars, which could be a result of the increased inventory and longer selling times.

Price Drops

The percentage of price drops remains unchanged YoY at 32.8%. This stability suggests that while sellers are adjusting their prices, the rate of price reductions has not accelerated, indicating a relatively steady market.

Off Market in Two Weeks

The percentage of homes going off market within two weeks has decreased by 11% YoY to 23%. This significant drop suggests that homes are taking longer to attract buyers, which could be a result of the increased inventory and more cautious buyer behavior.

In conclusion, the Florida housing market in July 2024 is characterized by a mix of stabilizing prices, increased inventory, and longer selling times. While demand remains strong, as evidenced by the increase in homes sold, the market is showing signs of shifting towards a buyer's market with more negotiating power for buyers and more competition among sellers. These trends suggest that both buyers and sellers need to be strategic in their approach to navigate the evolving market conditions effectively.