Existing Home Sales Fall Again (July 2023)

According to market data provided the National Association of Realtors (NAR), existing home sale transactions continued to decline during the month of July 2023.

Existing home sales dropped 2.2% from the prior month (June). On a year-over-year basis, sale transactions were down 16.6% to a seasonally adjusted annual rate of 4.07 million units.    

Per Lawrence Yun, NAR’s chief economist, “Two factors are driving current sales activity – inventory availability and mortgage rates,”. He further stated, “Unfortunately, both have been unfavorable to buyers”.  At this time, average mortgage interest rates for a 30-year fixed loan are in the mid 7% range, up from the historical lows from 2021.

Contrary to home sales, the median existing US home sale price continued to grow. At $406,700, this level is the fourth time it exceeded $400,000. Prices increased in the South, Midwest and Northeast but were unchanged in the West.

Existing home inventory was down 14.6% year-over-year to 1.11 million units. Based on the current pace of sales, there is a 3.3-month supply of homes on the market at this time.   The average marketing time for the month of July was 20 days, up from 18 days during the month of June.

Investors and vacation / second home buyers, purchased 16% of all homes sold in June, down slightly from 18% year-over-year.

The Florida Housing Market

Closed sale transactions across the state of Florida continue to decline on a year-over-year basis.  During the month of July 2023 there were 31,862 sale transactions across all property types, a year-over-year decline of 7.3%.

Median sale prices continued their rise for 2023 but is down slightly on a year-over-year basis.  The median sale price of $381,000 in July 2023 is slightly less than the recent peak of $388,990 in June 2022.

Active inventory has also remained in a tight range since summer 2022. As of July 2023, active inventory was 97,565 units, up 8.4% year-over-year. Based on the current rate of home sales, there is a 3.1 month supply of inventory currently available for sale.

Closed Sales – July 2023

The number of closed sales transactions within the state of Florida has continued to decline on year-over-year basis.  As of July 2023, the number of individual closed sales declined by 7.3% to 31,862 transactions. 

Closed Sales – Month by Month

Month Closed Sales % Change YOY
July 2023 31,862 -7.3%
June 2023 37,964 -8.7%
May 2023 39,267 -10.2%
Apr 2023  34,906  -20.1%
Mar 2023  39,016  -17.3%
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%

Median Sales Prices – July 2023

Since the beginning of 2023, home prices in Florida have continued to make strong gains. During the month of July, the median sale price across all property types was $381,000 which is near the highest price in 2023.

The recent peak occurred in June 2022 with a price of $388,990 and at this time, we are slightly below that level.

Median Price – Month by Month

Month Median Price % Change YOY
July 2023 $381,000 0.4%
June 2023 $387,990 -0.3%
May 2023 $385,000 0.0%
Apr 2023  $377,500  0.7%
Mar 2023  $375,000  2.7%
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%

Active Inventory – July 2023

Although active inventory across all property types continues to improve throughout the state, the trend has leveled over the past several months. During July 2023, inventory is up by 8.4% year-over-year to 97,565 units.  This represents an increase of approximately 50,000 units from the 46,944 active homes on the market as of the end of January 2022. 

Active Inventory – Month by Month

Month Active Inventory % Change YOY
July 2023 97,565 8.4%
June 2023 96,582 22.2%
May 2023 94,791 54.6%
Apr 2023  94,366  84.2%
Mar 2023  97,392  110.6%
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%

The South Florida Housing Market

The South Florida existing-home market continues the trending of lower overall home sales.  Closed sales during the month were down 11% year-over-year to 6,421 units.  The overall dollar volume also declined by 5.6% to $4.5 billion.

The median home price across all property types for July 2023 increased by 6.8% to $470,000 year-over-year.  

Inventory improved with approximately 23,000 homes across all property types available for sale within South Florida.  New listings across the tri-county area were down by 21% to 8,862.

The Greater Orlando Housing Market

The greater Orlando existing home market continued its trend of a slowdown in sales. Closed sales of 3,493 during the month of July were down by 7.7% year-over-year along with the overall dollar volume sliding by 4.2% to $1.6 billion.

The median home price across all property types improved by 2.6% to $400,000 year-over-year. 

Inventory levels continued to improve with 7,606 homes across all property types available for sale, up 8.3% from a year ago.  New listings across the Orlando metro area were down by 22% to 4,334 units while new pending sales are down by 5.2% to 3,570 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 6.4% year-over-year to 4,894 units while dollar volume slid by 4.8% to $2.3 billion.

The median home price across all property types for July 2023 declined by 0.9% to $375,000 year-over-year.

Active inventory levels have also declined, down 7.9% (year-over-year) with 10,007 homes across all property types available for sale.  New listings across the metro area were down by 27% while new pending sales were down by 2% to 5,219 units.

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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