The Real Estate Market Along Florida’s East Coast-July 2022 Update

Along Florida’s East Coast, the sales volume closed during the second quarter increased by 12% compared with the first quarter. Reduced purchasing power sidelined some potential buyers in recent months, though buyers that remained in the market benefitted from increased inventory. Continued strong migration of households from higher-cost states as well as some recovery by foreign buyers in the first half of the year added to sales volume.

Second quarter sales increased more substantially in the single-family home segment than condos. Within single-family homes, the pace of sales accelerated in higher-priced tiers, with 33% more sales of homes priced over $3 million during the second quarter. While sales increased within all price tiers, the number of sales in the less than $1 million segment grew at a slower pace in the second quarter.

The median price increased during the second quarter by 7% for condos and 10% for single-family homes, yet much of the increase occurred in April and May. In June, pricing across both property types was steady. Though price growth slowed in June, the median prices of condos and single-family homes remain more than 20% higher than one year ago.

AVERAGE SALES PRICE BY COUNTY

ALONG FLORIDA’S EAST COAST

INVENTORY ON THE RISE

For much of the last year and a half, the lack of for-sale inventory funneled potential buyers into a limited number of opportunities. The second quarter marked a turning point, with the number of active listings increasing in each month of the quarter. By June, condo listings were up by 20%, while single-family home inventory increased by 31% compared with May. The rapid price gains of recent quarters led to more owners seeking to take advantage of built-up equity in their homes. With more homes available and potential households affected by higher costs, the pricing of listings began to adjust. The median list price of condos fell by 3% in June, while the median list price of single-family homes decreased by nearly 6% on average along Florida’s East Coast.

MEDIAN SALES PRICE

ALONG FLORIDA’S EAST COAST

With inventory on the rise and some buyers paused, competition for available homes began to moderate. In aggregate, the share of condos and single-family homes that sold for more than the list price increased to 39% from 30% in the first quarter. The share of sales closed at a premium peaked in May and leveled in June.

While economic conditions and demand for housing remain strong, mortgage rates and higher costs have inhibited some buyer sentiment. Overall, market conditions strongly favored sellers in recent months, and a modest shift will only trend the housing market closer to normal. Normalized inventory levels and price growth are positive for the longer-term health of the region.

AVAILABLE INVENTORY

ALONG FLORIDA’S EAST COAST
SINGLE-FAMILY HOMES AND CONDOMINIUMS

SOLD ABOVE LISTED PRICE

ALONG FLORIDA’S EAST COAST