Florida Residential Housing – Market Update (February 2023)

According to the February 2023 market data published by the National Association of Realtors, existing US home sales snapped a twelve consecutive month decline, improving by 14.5% from January 2023.  This is the largest monthly percentage increase since July 2020.  However on a year-over-year basis, sales transactions were down 22.6% to a seasonally adjusted annual rate of 4.58 million units.    

According to Lawrence Yun, NAR’s chief economist, “Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines”. He further stated, “Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

For the first time in 131 months, the median existing home sale price declined.  As of the end of February 2023, the median price across all housing types was down 0.2% (year-over-year) to $363,000. Prices increased in the Midwest and Southern parts of the country but declined in the West and Northeast.

Existing home inventory was up 15.3% year-over-year to 850,000 units and based on the current pace of sales, there is a 2.6-month supply of homes on the market at this time.   The average marketing time for the month was 34 days, up from 18 as of February and 33 days from the prior month.

Vacation and second home buyers along with investors, purchased 18% of all homes sold in February, down slightly from 19% in February 2022.

The Florida Housing Market

Due to a combination of rising interest rates and slowing buyer demand, closed sale transactions across the state of Florida declined by 23.6% year-over-year during the month of February 2023.  However, the 27,514 closed sales improved considerably from that realized during the prior month.

During February, the housing market in the state of Florida has more inventory and higher median prices as compared to a year ago.  

Dr. Brad O’Connor, Chief Economist for the Florida Realtors, continues to state that interest rates continue to adversely impact the market stating “The 30-year fixed mortgage rate was in the 6- to 6.5% range for much of January, which helped spur some renewed activity in the existing home sales market”.  He continued indicating, “While closed sales were still down substantially year over year, the numbers for February were much more favorable than what we saw in January”.

Inventory across Florida continues to improve, up 131.4% for single-family homes and 106% for condominiums & townhome units.  Based on the current rate of home sales, there is a 2.9 month supply of inventory currently available as of the end of January.

Closed Sales – February 2023

The number of closed sales transactions within the state of Florida has declined (year-over-year) for the last year.  As of February 2023, the number of individual closed sales declined by 23.6% to 27,514 transactions. 

Closed Sales – Month by Month

Month Closed Sales % Change YOY
Feb 2023  27,514  -23.6%
Jan 2023  21,825  -34.7%
Dec 2022  27,994  -36.9%
Nov 2022  25,210  -37.7%
Oct 2022  30,298  -25.1%
Sept 2022  29,654  -28.5%
Aug 2022  36,263  -16.5%
July 2022 34,389 -24.6%
June 2022 41,594 -20.0%
May 2022 43,747 -8.9%
Apr 2022 43,710 -16.5%
Mar 2022 47,203 -7.5%

Median Sales Prices – February 2023

Median sale prices continue to exceed their year-over-year averages but continue to decline since peaking in June 2022.  During the month of February 2023, the median sale price across all property types was $365,000, up 4.3% year-over-year but down considerably from the peak ($388,990).  

Although there was a slight bump in February, it does appear that a downward trend is in place.

Median Price – Month by Month

Month Median Sale Price % Change YOY
Feb 2023  $365,000  4.3%
Jan 2023  $360,000  5.0%
Dec 2022  $365,000  5.8%
Nov 2022  $365,990  9.3%
Oct 2022  $374,900  15.3%
Sept 2022  $370,990  14.2%
Aug 2022  $375,000  16.6%
July 2022 $379,500 18.1%
June 2022 $388,990 21.7%
May 2022 $385,000 24.2%
Apr 2022 $375,000 25.0%
Mar 2022 $365,000 23.7%

Active Inventory – February 2023

Active inventory across all property types continues to improve throughout the state. For the month February 2023, inventory is up by 119.3% year-over-year to 98,073 units.  This represents an increase of more than 50,000 units from the 46,944 active homes on the market as of the end of January 2022. 

It does appear, however, to be leveling off since the fourth quarter 2022.

Active Inventory – Month by Month

Month Active Inventory % Change YOY
Feb 2023  98,073  119.3%
Jan 2023  100,798  114.7%
Dec 2022  99,084  95.5%
Nov 2022  103,016  81.8%
Oct 2022  100,428  65.7%
Sept 2022  96,277  52.5%
Aug 2022  93,101  47.4%
July 2022 90,022 44.1%
June 2022 79,015 36.7%
May 2022 61,318 8.8%
Apr 2022 51,234 -13.3%
Mar 2022 46,247 -28.2%

The South Florida Housing Market

Although February 2023 represented a slight bump, the South Florida existing-home market continues trending  of lower overall sales.  Closed sales during the month were down 34% year-over-year to 5,356 units.  The overall dollar volume also declined by 35% to $3.6 billion.

The median home price across all property types for February 2023 increased by 7.4% to $435,000 year-over-year.  

Inventory improved with approximately 26,000 homes across all property types available for sale within South Florida.  New listings across the tri-county area were down by 15% to 9,325. 

The Greater Orlando Housing Market

The Orlando – Kissimmee – Sanford existing home market continued its slowdown in sales during the month of February.  Closed sales of 2,830 were down 27% year-over-year along with the overall dollar volume which was down by 20% to $1.3 billion.

The median home price across all property types increased by 7.9% to $382,990 year-over-year. 

Inventory levels continued to improve with 7,083 homes across all property types available for sale, up 119% from a year ago.  New listings across the metro area were down by 20% to 3,596 units while new pending sales are down by 14% to 3,782 units.

The Tampa Bay Housing Market

The Tampa – St. Petersburg – Clearwater MSA also continued it’s downward trend with respect to sale transactions.  Existing-home sales were down 19% year-over-year to 4,440 units while dollar volume was also down by 14% to $1.9 billion.

The median home price across all property types for February 2023 increased by 2.9% to $355,000 year-over-year.

Inventory levels have improved significantly, increasing 163% (year-over-year) with 10,748 homes across all property types available for sale.  New listings across the metro area were down by 10% while new pending sales were down by 6.4% to 5,471 units.

The Greater Jacksonville Housing Market

During the month of February, the greater Jacksonville housing market continued to experience slower activity with respect to home sale transactions.  Closed sales of 2,067 were down 19% year-over-year and the overall dollar volume was also down by 13% to $863 million.

Prices across all property types continue to rise with the median home price increasing by 2.4% year-over-year to $340,990.

Inventory continues to improve with approximately 6,700 homes across all property types available for sale within the greater Jacksonville area, a 125% increase year-over-year.  New listings were down 10% to 2,603 homes while new pending sales declined by 19% to 2,536 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.

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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