U.S. Existing Home Sales Decline to a Two-Year Low
For the fourth straight month national existing home sales continued to decline. According to the National Association of Realtors, sales were down 8.6% year-over-year and 3.4% month-over-month to a seasonally adjusted annual rate of 5.41 million units.
According to Lawrence Yun, NAR’s chief economist, “Home sales have essentially returned to the levels seen in 2019 – prior to the pandemic – after two years of gangbuster performance”. Mr. Yun added, “Further sales declines should be expected in the upcoming months given housing affordability challenges from the sharp rise in mortgage rates this year.”
The median existing home price across all property types for May 2022 was $407,600, up 14.8% year-over-year. Home prices rose in each region of the country. This marks 123 consecutive months of year-over-year median home price increases, which is the longest-running streak on record.
Housing inventory is improving with 1.16 million units available for sale as of the end of May 2022, an increase of 12.6% from April but down 4.1% year-over-year. Based on the current pace of sales, there is a 2.6-month supply of homes on the market at this time, up from 2.5 months year-over-year.
The average marketing time for May was 16 days, down slightly from 17 days in April 2022 and in May 2021.
The Florida Housing Market
“Households everywhere are feeling the pinch of high inflation,” according to 2022 Florida Realtors President Christina Pappas. She further stated, “Homebuyers are also facing the challenges of rising interest rates and tight inventory of for-sale homes, causing some to hit the pause button on their plans.”
Closed Sales – April 2022
The number of closed sales transactions within the state of Florida has declined (year-over-year) for four straight months. As of May 2022, the number of individual closed sales declined by 8.9% to 43,747 transactions. Single family home sales were down by 6.9% to 28,861 transactions while condominium & townhome sales declined by 14.4% to 13,265 transactions.
Single Family Homes – Closed Sales
|Month||Closed Sales||% Change YOY|
While there a declining trend in year-over-year sales, it should be noted that the number of sales in May 2022 is fairly consistent with the median and average monthly sales number for the prior 12 months.
Median Sales Prices – May 2022
Median sale prices continue to climb across the entire state. For May 2022 the median sale price across all property types was up 24.2% (year-over-year) to $385,000. During the same period, the median sale price of single-family homes improved by 21.8% to $420,000 while condominiums & townhomes improved by 28.8% to $322,000. Average sales prices were also up by 15.6% for single-family homes ($602,558) and up by 19.2% for townhomes & condominiums ($482,557).
|Month||Median Sale Price||% Change YOY|
Active Inventory – May 2022
Active inventory across all property types has improved during 2022. For the month of May 2022, inventory is up 8.8% year-over-year to 61,318 units. This is also an improvement from the 51,234 active homes on the market as of the end of April 2022 and above the trailing 12-month average of 55,415 homes. Single-family home inventory is up 31.5% to 40,013 units while townhomes & condominiums are down by 20.5% to 18,725 units.
|Month||Active Inventory||% Change YOY|
The South Florida Housing Market
Due to rising interest rates and increasing home prices, the South Florida existing-home market has continued to slow. During the month of May 2022 closed sales were down 15% year-over-year to 9,418 homes. The overall dollar volume also declined by 5.3% to $7.0 billion.
The median home price across all property types for May 2022 increased by 22% to $450,000 year-over-year. Luxury transactions in South Florida for $1 million or more continued to impact the median and average values.
Inventory continues to remain below historical levels with approximately 17,000 homes across all property types available for sale within South Florida. New listings across the tri-county area were up slightly by 0.3% to 12,507. Pending sales also continue to decline with 9,228 new pending sales for the month of May 2022.
The Greater Orlando Housing Market
As similar to most other major markets within Florida, the Orlando – Kissimmee – Sanford existing home market slowed during the month of May 2022. Closed sales of 4,492 were down 8.8% year-over-year; however, the overall dollar volume was up by 13% to $2.0 billion due to increasing home prices.
The median home price across all property types for May 2022 increased by 27% to $393,100 year-over-year. Luxury transactions in the metro area Orlando area for $1 million or more continued to significantly impact the median and average values.
Inventory levels improved with 4,919 homes across all property types available for sale. New listings across the metro area were also up 12% to 5,893 while new pending sales are down by 13% to 4,515 units.
The Tampa Bay Housing Market
Similar to the South Florida and metro Orlando areas, the Tampa – St. Petersburg – Clearwater MSA existing-home market slowed during the month of May 2022. Closed sales of 6,399 were down by 5.8% year-over-year; however, the overall dollar volume was up by 17% to $2.9 billion due to increasing home prices.
The median home price across all property types for May 2022 increased by 28% to $375,000 year-over-year. Luxury transactions in the Tampa Bay for $1 million or more continued to heavily influence the median and average values.
Inventory levels have improved by 29% (year over year) with approximately 6,260 homes across all property types available for sale. New listings across the metro area were also up by 6.9% to 7,877 while new pending sales were down by 11% to 6,331 units.
The Greater Jacksonville Housing Market
During the month of May 2022, the greater Jacksonville housing market has changed it’s trend. Closed sales of 3,181 were down 9.6% year-over-year and the overall dollar volume was up by 12% to $1.5 billion due to increase in home values across the area.
Prices across all property types continued to rise at rapid pace – the median home price increased by 24% to $370,000 year-over-year. Luxury transactions in the Jacksonville continued to influence the market values.
Inventory has improved with approximately 5,500 homes across all property types available for sale within the greater Jacksonville area, up 17% year-over-year. This is also an but is an improved from 3,322 homes as of January 2022. New listings were up 6.5% to 4,127 homes while new pending sales declined by 15% to 3,217 homes.
Are you thinking of selling?
Although the market is experiencing a change in trend, home values continue their rapid rise. If you are a homeowner and are considering selling your personal residence, vacation home or investment property, now may be the perfect time to do so.
Our team has assisted sellers not only throughout the state of Florida, but in most major markets nationwide. We take a highly methodical and deliberate approach when working with or clients and have specific strategies to help get the best value for the property.