Home Sales Continue to Decline; Florida Follows (December 2023)

According to the most recent data provided the National Association of Realtors (NAR), existing home sale transactions declined by 1.0% during the month of December 2023. Additionally, sale transactions were down 6.2% on a year-over-year basis to a seasonally adjusted annual rate of 4.09 million units.    

Per Lawrence Yun, NAR’s chief economist, “The latest month’s sales look to be the bottom before inevitably turning higher in the new year,”. He further stated, “Mortgage rates are meaningfully lower compared to just two months ago, and more inventory is expected to appear on the market in upcoming months.”  

The median existing home sale price continues to rise.  At $382,600, this is an increase of 4.4% year-over-year and the sixth consecutive month of year-over-year price increases.

Existing home inventory improved by 4.2% year-over-year to 1 million units. Based on the current pace of sales, there is a 3.5-month supply of homes on the market at this time.  The average marketing time for the month December was 29 days, up from 26 days during the prior year.

Investors and vacation / second home buyers, purchased 16% of all homes sold in December.

The Florida Housing Market – December 2023

As of year-end 2023, there were 378,188 sale transactions across all property types throughout the state of Florida. Yearly sales levels declined by 18.7% from 2022 levels (429,490 units) with a significant decline from that which occurred in 2021 528,004 units).

Median sale prices continued their rise on a year-over-year basis.  The median sale price of $380,000 in December 2023 is up 4.1% (year-over-year) but slightly less than the 2023 peak of $387,990 in June.

Active inventory has remained in a tight range for most of early 2023 but is now on an fairly significant uptrend. As of December 2023, active inventory was 127,873 units, up 29.1% year-over-year. Based on the current rate of home sales, there is a 4.1 month supply of inventory currently available for sale.

Closed Sales

After a rapid rise in the first quarter, the number of closed sales transactions within the state of Florida continued their downward trend.  As of December 2023, sales were down 4.5% year-over-year to 26,722 units.

Median Sales Prices

Since the beginning of 2023, home prices in Florida have continued their rapid rise. During the year, the median sale price across all property types rose from $360,000 in January to $380,000 at year end.

The 2023 peak occurred in June with a median sale price of $387,990.

Active Inventory

Active inventory across all property types continues to improve throughout the state and as of year-end, is near the high for the year.

During December 2023, inventory is up by 29.1% year-over-year to 127,873 units. This represents an increase of more than 25,000 units from the beginning of the year, but still lags pre-pandemic levels.

The South Florida Housing Market

During 2023 the South Florida existing-home market continues the see increasing median sales prices but declining home sales. Closed sales during the month of December were down 3.3% year-over-year to 5,425 units.  The overall dollar volume improved by 4.9% to $3.7 billion due to continued rising home prices.

The median home price across all property types increased by 12.0% to $460,000 year-over-year.  

Inventory improved with approximately 31,000 homes across all property types available for sale within the South Florida area. New listings across the tri-county area were also up by double digits (12%).

The Greater Orlando Housing Market

After a mostly down year for sale transactions, closed sales in the greater Orlando existing home market slipped by 6.6% to 2,865 units.  Overall dollar volume was virtually flat at $1.4 billion.

The median home price across all property types improved by 4.7% to $400,000 year-over-year. 

Inventory levels improved with 9,830 homes across all property types available for sale, up 22% from a year ago. New listings across the Orlando metro area were also up by 12% to 3,129 units.  Pending sales were up slightly by 0.4% to 2,494 units.

The Tampa Bay Housing Market

At year end 2023, existing-home sales in the Tampa – St. Petersburg – Clearwater MSA declined by 8.8% year-over-year to 3,964 units. Dollar volume was virtually flat at $1.9 billion.

The median home price across all property types rose by 4.2% tot $375,000.

Active inventory levels have improved, up 16% (year-over-year) with 13,908 homes across all property types available for sale.  New listings across the metro area were up 1.5% with new pending sales down by 6.3% to 3,500  .

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.

To learn more about how we help our clients get the best possible price for their property, visiting our web site or contact us at info@quantumcos.com.

Quantum Realty Advisors, Inc.

For more than 20 years Quantum has provided premium quality real estate services not only to traditional home buyers and sellers, but to business enterprises, trust and estate managers, asset management firms, charitable organizations and several of the world’s best know financial institutions.

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