Existing Home Sales Decline for Two Straight Months
We may be witnessing the beginning of a nationwide trend as sales of existing homes declined for a second consecutive month in March 2022. On a year-over-year basis sales were down in each region while month-over-month, sales in were down in three of four regions (the West region being the exception).
The total number of existing home sale transactions completed in March dropped by 4.5% year-over-year to a seasonally adjusted annual rate of 5.77 million units. Sales also declined by 2.7% on a month-over-month basis. According to Lawrence Yun, NAR’s chief economist, “The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power”. With mortgage rates continuing to rise, Mr. Yun predicts transactions to contract by 10% for the year.
The median existing home price across all property types for March 2022 was $375,300, up 15.0% year-over-year. Home prices rose in each region of the country. This marks 121 consecutive months of year-over-year median home price increases, the longest-running streak on record.
Inventory remain an issue with at a 2.0-month supply at the present sales pace. While this is up from 1.7 months in February, the market experienced a slight decline from 2.1 months of supply during March 2021. Total inventory as of the end of March totaled 950,000 units, up 11.8% from February and down 9.5% from one year ago.
The average marketing time for March ’22 was 17 days, down slightly from 18 days in February ’22 as well as down from 18 days in March 2021. Around 87% of homes that were sold during the month of March ’22 were on the market for less than 30 days.
According to FloridaRealtors, “Florida’s housing market in March 1Q 2022 showed the impact of rising mortgage rates, increased home prices and a shortfall of for-sale supply, with fewer closed sales compared to a year ago, according to Florida Realtors®’ latest housing data.”
Prices and limited inventory levels are starting to materially impact sales. The number of individual closed sales across all properties was down by 7.5% year-over-year to 47,203 units while the number of single-family home transactions was down by 6.2% to 30,793 units. Until inventory slows and demand starts to wane, this is anticipated to be a continuing trend.
Median sale prices continue to skyrocket across the entire state. For March 2022 across all property types, the median sale price was up 23.7% year-over-year to $365,000. During the same period, the median sale price of single-family homes improved by 21.3% to $396,558. Average sales prices were also staggering, up 15.4% year-over-year to $525,913 across all property types and up 11.7% to $571,245 for single-family homes. It should be noted that the luxury market is driving market averages as single-family homes sales $1,000,000 and over increased by more than 6% year-over-year.
Inventory levels are almost non-existent with active inventory across all property types down 28.2% year-over-year to 46,247 units. However, this is a slight improvement from the 44,715 active homes on the market as of the end of February 2022. Single-family home inventory is down by 10.2% to 28,436 units which equates to one-month of supply at the current pace of sales.
The South Florida Housing Market
Due to increasing prices and declining inventory levels, the South Florida existing-home market slowed during the month of May 2022. Closed sales of 10,992 were down 1.8% year-over-year; however, the overall dollar volume was up by 7.7% to $7.9 billion.
The median home price across all property types for March 2022 increased by 19% to $420,000 year-over-year. Single-family home transactions in South Florida for $1 million or more in price increased slightly by 1.1% year-over-year.
Inventory is down significantly with approximately 14,500 homes across all property types available for sale within South Florida. New listings across the tri-county area were also down by 6.9% to 12,463.
The Greater Orlando Housing Market
As similar to most other major markets in the state, the metro Orlando existing-home market slowed during the month of May 2022. Closed sales of 4,821 were down 9.5% year-over-year; however, the overall dollar volume was up by 9.4% to $2.0 billion.
The median home price across all property types for March 2022 increased by 26% to $375,000 year-over-year. Single-family home transactions in the Orlando – Kissimmee – Sanford MSA of $1 million or more in price increased by 11.7% year-over-year.
Inventory levels are down significantly with about 3,400 homes across all property types available for sale. There may be some relief for home purchasers as new listings across the metro area were up by 3.8% to 5,360.
The Tampa Bay Housing Market
Like the South Florida and metro Orlando areas, the Tampa – St. Petersburg – Clearwater MSA existing-home market also slowed during the month of May 2022. Closed sales of 6,813 were down by 8.5% year-over-year; however, the overall dollar volume was up by 11% to $2.9 billion.
The median home price across all property types for March 2022 increased by 29% to $354,900 year-over-year. Single-family home transactions for $1 million or more in price increased by 27.8% year-over-year.
Inventory is down by double-digits with approximately 4,300 homes across all property types available for sale. New listings across the metro area were also down slightly (less than 1%) to 7,304.
The Greater Jacksonville Housing Market
The greater Jacksonville housing market is outperforming state averages. Closed sales of 3,257 were up 15% year-over-year and the overall dollar volume was up by 38% to $1.4 billion.
The median home price across all property types in the MSA increased by 23% to $350,000 year-over-year. Single-family home transactions for $1 million or more in price increased by 48.4% year-over-year.
Inventory is down significantly with approximately 3,100 homes across all property types available for sale within the greater Jacksonville area. New listings were also down by 5.3% to 3,487.
Are you thinking of selling?
Based on the year-end 2021 data, the current state of the market is highly favorable for seller. If you are a homeowner and are considering selling your personal residence, vacation home or investment property, not 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.