According to Lawrence Yun, NAR’s chief economist, “More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher”. He further indicated, “The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years.”
Median existing home prices across all property types continue to rise. As of the end of October 2022, the median price was up 6.6% (year-over-year) to $379,100. This marks 128 consecutive months of year-over-year median home price increases which is the longest-running streak on record.
Housing inventory declined for the second straight month to 1.22 million units. 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 October 2022 was 21 days, up from 18 as of October 2021 and 19 days from the prior month.
The Florida Housing Market
According to Dr. Brad O’Connor who is the Chief Economist for the Florida Realtors, interest rates have had a significant impact on the market. He state, “In terms of closed sales in Florida, 2022 started out a lot like 2021, but soon, the shock of the rapid rise in mortgage rates caused many buyers to suspend their home searches and sit on the fence; some even had to drop out when their planned budget for a home couldn’t keep pace. As a result, the second half of 2022 has seen the level of existing home sales in Florida more-or-less fall in line with the typical pre-pandemic seasonal trends.”
Dr. O’ Conner further indicated, “The fact that monthly sales still remain in the neighborhood of pre-pandemic levels despite today’s significantly higher home prices and mortgage rates only illustrates that despite these headwinds, housing demand in Florida continues to receive support from its recent surge in post-pandemic in-migration, vacation home purchases, and the ever-increasing number of millennials looking to find a home for their growing families.”
Closed Sales – October 2022
The number of closed sales transactions within the state of Florida has declined (year-over-year) for the last 10 months. As of October 2022, the number of individual closed sales declined by 25.1% to 30,298 transactions.
Closed Sales – Month by Month
|Month||Closed Sales||% Change YOY|
Median Sales Prices – September 2022
Median sale prices continue to exceed their year-over-year averages and increased on a month-over-month basis during the past month. During October 2022, the median sale price across all property types was $374,900, up 15.3% year-over-year but down slightly from $388,990 observed in June 2022.
It does appear that a downward trend is in place.
Median Price – Month by Month
|Month||Median Price||% Change YOY|
Active Inventory – October 2022
Active inventory across all property types continues to improve throughout the state. For the month October 2022, inventory is up 65.7% year-over-year to 100,428 units. This marks the first time inventory exceeded 100,000 units since October 2020. This also represented an increase of approximately 50,000 units from the 46,247 active homes on the market as of the end of January 2022.
Active Inventory – Month by Month
|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 October 2022 were down 29% year-over-year to 6,243 units. The overall dollar volume also declined by 19% to $4.1 billion.
The median home price across all property types for October 2022 increased by 15% to $430,000 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 9,260.
The Greater Orlando Housing Market
The Orlando – Kissimmee – Sanford existing home market also observed a slowdown in sales during the month of October 2022. Closed sales of 3,382 were down 24% year-over-year along with the overall dollar volume which was down by 13% to $1.5 billion.
The median home price across all property types increased by 16% to $385,000 year-over-year.
Inventory levels improved substantially with 8,851 homes across all property types available for sale, up 81 from a year ago%. New listings across the metro area were down by 22% to 3,814 units while new pending sales are down by 41% to 2,830 units.
The Tampa Bay Housing Market
Hurricane Ian had an impact on the Tampa – St. Petersburg – Clearwater MSA during the month of October as closing were delayed due to the storm. Existing-home sales were down 21% year-over-year to 4,895 units while dollar volume was also down by 6.8% to $2.2 billion.
The median home price across all property types for October 2022 increased by 17% to $370,000 year-over-year.
Inventory levels have improved by a staggering 110% (year-over-year) with 12,461 homes across all property types available for sale. New listings across the metro area were down 19% while new pending sales were down by 38% to 4,174 units.
The Greater Jacksonville Housing Market
During the month of October, the greater Jacksonville housing market also continues to experience slower activity with respect to home sale transactions. Closed sales of 2,427 were down 26% year-over-year and the overall dollar volume was also down by 10% to $1.1 billion.
Prices across all property types continue to rise by double digits – the median home price increased by 14% to $360,000 year-over-year.
Inventory continues to improve with approximately 7,768 homes across all property types available for sale within the greater Jacksonville area, a 73% increase year-over-year. New listings were down 19% to 2,802 homes while new pending sales declined by 41% to 2,029 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.