Team Donovan Blog

 

Resort area inventory levels continued to climb during June as the total number of homes listed for sale increased 35% from in May 451 to 692 in June. Year on year overall inventory is up by 307 homes or 45% from the 385 total twelve months ago. Total sales during the month of 445 were down 15% from the 523 closings last month and also down from the 525 sales achieved in  June 2021.  During June the average days on market that a home took to sell was 64 which was 12 days faster than last month and some 35 days below the number of days it took a year ago. A home that closed during June went on to achieve 99.9% of its listed price which is up on the 98.7% level being achieved last June.  The markets median price continued to rise to finish the month at $328,000 which was an increase of 21.8% from the $260,738 level of twelve months ago and also an increase of 2.5% from the $319,950 median price in May. As a forward indicator the pipeline number of homes under offer/contract pending closure stood at 719 which was down 9.2% on the 792 pipeline total of year ago. During June the market saw 55 homes withdrawn from sale having failed to attract a buyer.  The months inventory total when considered against pace of total sales reveals an increase in home availability across the market with current levels suggesting a 1.5 month supply at the current sales pace which is up on a 0.9 month total of May and just over double the 0.7 month supply we saw a year ago.     

 

 

The May median home price stood at $379,950, an increase of 2.7% compared to $370,000 in April to set a record high for the fourth consecutive month. Interest rates increased from 4.9% during the month to 5.3% producing the highest interest rates seen in the Orlando area since 2009. This is also the first time that Orlando’s interest rates have increased above 5% since April 2010, when they then stood at 5.1%. Distressed sales of bank owned and short sales properties accounted for 0.6% of all sales during the month which represented a 7.7% decrease from April 2022, when 26 distressed homes sold.   Orlando area inventory increased by 44.2% overall from April 2022 to May 2022 from 2,670 homes to 3,851 with inventory in May some 36.5% higher than during May 2021. The supply of homes remained at just under one month.  

 

 

Rising mortgage interest rates, increased inflation and historically low inventory levels were factors influencing the Florida housing market during May, with fewer closed sales compared to a year ago, according to Florida Realtors®’ latest housing data. Last month, closed sales of single family homes statewide totaled 28,861, down 6.9% year on year, while existing condo and townhome sales totaled 13,265 which was a fall of 14.4%. The statewide median sales price for an existing single family home in May was $420,000, up 21.8% from the previous year. Last month’s statewide median price for condo and townhome units was $322,000, up 28.8% from a year ago. Floridas supply side of the market saw an increase in inventory of existing single family homes to offer a 1.4 month supply compared to the 1.1 month supply of a year ago. Condo and townhome inventory had a 1.5 month supply level during May. According to Freddie Mac, the interest rate for a 30 year fixed rate mortgage averaged 5.2% during the month, significantly higher than the 2.96% averaged during the same month a year ago.

 

 

The sales of existing homes fell during May by 3.4% to a seasonally adjusted annualized rate of 5.41 million units, according to the National Association of Realtors. This is the lowest reading since June 2020, which was during the early months of the Covid pandemic. Adjusting for this, it is the lowest since January 2020 with sales 8.6% lower than in May 2021. April’s sales were also revised slightly lower.  There were 1.16 million homes for sale at the end of the month, an increase of 12.6% in overall inventory month on month but still down 4.1% from May 2021. At the current sales pace this level represents a 2.6 month supply. Low supply levels overall continued to push home prices higher with the median price of a house sold during May at $407,600, an increase of 14.8% from May 2021 representing the highest price on record since the Realtors began tracking this in the late 1980s. Supply is at the lowest levels at the lower end of the market, which is likely why activity there continues to be weaker than at the higher end. Sales of homes priced between $100,000 and $250,000 fell 27%  year on year while sales of homes priced between $750,000 and $1 million were up 26% while sales of homes priced above $1 million were up 22% year on year.  Houses stayed on the market for an average of just 16 days, the lowest on record for the Realtors. Cash buyers were still higher than normal at 25% of all sales. Investors made up 16% of all transactions, down slightly from April and from a year ago. First time buyers comprised 27% of all transactions, down from 31% a year ago.