Here are some key points about recent changes in the Florida real estate market and what they could signal for the rest of the country:
Housing inventory is rising rapidly in Florida:
There has been a 16-year high in new listings for single-family homes in Florida as of February 2024.
Active listings or housing supply for single-family homes in Florida increased by 40.5% year-over-year in March 2024, on top of a 116% increase the previous year.
While prices are still up around 4% year-over-year in January 2024 for single-family homes in Florida, the rapidly rising inventory levels signal a cooling market.
More price reductions and longer marketing times:
The share of price reductions in Florida is at a 5-year high as of February 2024.
The average time for a home to go under contract after listing (days on market) reached 47 days in February 2024, the slowest rate since at least February 2020.
Slowing sales and increasing housing supply:
Closed home sales in March 2024 were lower than the average for March in 2016-2019.
New pending home sales (contracts signed) fell 3% year-over-year in March 2024.
The months of supply (housing inventory relative to sales pace) reached around 5 months in March 2024, indicating a buyer’s market.
Condo market also struggling:
The condo market in Florida is facing challenges similar to the single-family home market, with worsening inventory and pricing issues mentioned.
While focused on Florida, these trends of rising inventory, more price cuts, slowing sales, and increasing housing supply could potentially foreshadow a broader cooling of the national housing market if similar patterns emerge across other states. The heated pandemic housing boom appears to be deflating rapidly in Florida’s real estate markets.
