Sellers are driving the real estate market in Florida right now, making growth solid and sellers happy. During third quarter, 2015, more properties were being sold and median prices for homes sold rose. There was less inventory available and homes spent less time on the market. This positive trend appears to continue into 4Q 2015, with the Florida real estate market moving towards being a seller’s market, though changes in interest rates and increased prices may slow this trend in the coming year.
The Numbers Behind 3Q 2015
The number of homes sold in the third quarter of 2015 saw a solid increase, with the total sold just over 74,100. That is a 14.7 increase over the third quarter 2014. This upward trend indicates a freer market with buyers willing to pay the seller’s price, or better. In fact, sellers got more than their asking price in almost 95 percent of single family home sales during 3Q 2015 and for just over 93 percent of townhouse/condo sales in the same period.
Single family home prices are also trending upwards, with the median price for homes sold in 3Q 2015 at $199,990. That is an almost 10 percent increase since 3Q 2014. Townhouse/condo prices also saw a trend upwards with median prices in 3Q 2015 at $150,000, a 7.9 increase over the same time in 2014.
This increase in buyer interest is being noted by real estate agents across the state. This increased demand has driven the median for days on the market down to 46 days for single family homes and 53 days for townhouses and condos. The median is the point where half the homes go faster while the other half goes slower.
This increased buyer demand has also reduced the inventory of available homes down to 4.4 months for single family and 5.2 months for townhouses and condos.
Another indicator of a solid Florida real estate market is the reduced number of distressed homes on the market. The number of short sales for single family homes dropped 34.4 percent while short sales for townhouse/condos dropped almost 42 percent.
Solid growth and an interested buyer pool shows that the real estate market in Florida is on a firm foundation. Buyers and sellers both need to pay attention as mortgage rates are likely to go up in 2016.