Seven Straight Months of Declining U.S. Existing Home Sales
Existing-home sales have declined for seven straight months according to the National Association of Realtors. Individual ales transactions were down 19.9% year-over-year and 0.4% month-over-month to a seasonally adjusted annual rate of 4.81 million units. Based on month-over-month results, it is possible that the trend of declining sales may be ending.
According to Lawrence Yun, NAR’s chief economist, “The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes”. He further indicated, “The softness in home sales reflects this year’s escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago.”
Median existing home prices across all property types continues its remarkable rise. As of the end of August 2022, the median price was up 7.7% (year-over-year) to $389,500. This marks 126 consecutive months of year-over-year median home price increases which is the longest-running streak on record.
Housing inventory was fairly stable during August but declined by 1.5% from the month of July. Based on the current pace of sales, there is a 3.2-month supply of homes on the market at this time.
The average marketing time for August 2022 was 16 days, up from 14 days in July but down from 17 days in August 2021.
The Florida Housing Market
According to 2022 Florida Realtors President Christina Pappas, “We are seeing signs that Florida’s housing market is changing, as for-sale inventory continued to increase in August.”
Additionally, Dr. Brad O’Connor (the Chief Economist for the Florida Realtors) indicated that growth rates have slowed considerably. He stated, “At the end of August, there were nearly 64,000 single-family homes actively listed for sale in Florida’s multiple listing services (MLSs), which is 70.4% more than were listed a year ago and 137% more than were listed six months ago at the end of February. But the number of active listings now is still close to 26% lower than at this time three years ago, prior to the pandemic. What’s more, the rate of growth in single-family inventory has slowed considerably in August, rising only 4% compared to the prior month. By contrast, on a month-over-month basis, inventory had risen by 33% in June and 17% in July.”
Closed Sales – August 2022
The number of closed sales transactions within the state of Florida has also declined (year-over-year) for seven straight months and for nine of the last 12 months. As of July August 2022, the number of individual closed sales declined by 16.5% to 36,263 transactions. Single family home sales were down by 15.8% while condominium & townhome sales declined by 20.3%.
Closed Sales – Month by Month
|Month||Closed Sales||% Change YOY|
Median Sales Prices – August 2022
Median sale prices continue to exceed their year-over-year averages but declined on a month-over-month basis during the past two months. During August 2022, the median sale price across all property types was $375,000, up 16.6% year-over-year but down slightly from $388,990 observed in June 2022. During the same period, the median sale price of single-family homes improved by 15.0% to $407,000 while condominiums & townhomes improved by 20.8% to $305,000.
|Month||Median Sale Price||% Change YOY|
Active Inventory – August 2022
Active inventory across all property types continues to improve. For the month August 2022, inventory is up 47.4% year-over-year to 93,101 units. August levels represented an increase of more than 3,000 units from August 2022 – this is also a substantial improvement from the 46,247 active homes on the market as of the end of January 2022. Single-family home inventory is up 67.5% to 61,453 units while townhomes & condominiums was up by 9.5% to 25,372 units.
|Month||Active Inventory||% Change YOY|
The South Florida Housing Market
The South Florida existing-home market has continued its trend of lower overall sales. Closed sales during August 2022 were down 23% year-over-year to 7,556 units. The overall dollar volume also declined by 21% to $4.8 billion.
The median home price across all property types for August 2022 increased by 12% to $425,000 year-over-year. Luxury transactions across South Florida for $1 million or more continued to impact the median and average values.
Inventory improved slightly with approximately 24,000 homes across all property types available for sale within South Florida. New listings across the tri-county area were down by 8.8% to 10,433.
The Greater Orlando Housing Market
The Orlando – Kissimmee – Sanford existing home market also observed a slowdown in sales during the month of August 2022. Closed sales of 4,034 were down 16 year-over-year along with the overall dollar volume which was down by 5.2%.
The median home price across all property types increased by 18% to $389,000 year-over-year. Luxury transactions in the metro area Orlando area continued to impact the median and average values.
Inventory levels improved substantially with 8,502 homes across all property types available for sale, up 67%. New listings across the metro area were down by 8.4% to 4,938 units while new pending sales are down by 19% to 4,095 units.
The Tampa Bay Housing Market
Similar to the South Florida and metro Orlando area, the Tampa – St. Petersburg – Clearwater MSA existing-home market is also slowing. Existing-home sales for the month of August 2022 were down 17% year-over-year to 5,535 units while dollar volume was also down by 2.6% to $2.4 billion.
The median home price across all property types for August 2022 increased by 19% to $370,000 year-over-year. Luxury transactions in the Tampa Bay continued to heavily influence the median and average values.
Inventory levels have improved by a staggering 88% (year-over-year) with approximately 11,296 homes across all property types available for sale. New listings across the metro area were flat while new pending sales were down by 17% to 5,772 units.
The Greater Jacksonville Housing Market
During the month of August, the greater Jacksonville housing market also continues to experience slower activity with respect to home sale transactions. Closed sales of 2,671 were down 22% year-over-year and the overall dollar volume was also down by 7.3% to $1.2 billion.
Prices across all property types continue to rise by double digits – the median home price increased by 19% to $365,000 year-over-year. Luxury transactions in the Jacksonville continued to heavily influence the median value.
Inventory continues to improve with approximately 7,055 homes across all property types available for sale within the greater Jacksonville area, a 55% increase year-over-year. New listings were down 15% to 3,434 homes while new pending sales declined by 30% to 2,612 homes.
Are you thinking of selling?
Based on the most recent data, the current state of the residential market is changing fast. 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 while prices are still strong.
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.