ORLANDO, Florida., April 20, 2022 /PRNewswire/ — florida The housing market in March and the first quarter of 2022 showed the impact of rising mortgage rates, rising house prices and a shortfall in supply for sale, with fewer sales being completed compared than a year ago, according to the latest housing data from Florida Realtors®.
“Buyers and sellers in Florida in March continued to see rising mortgage rates, a very limited supply of homes for sale and rising prices,” said the president of 2022 Florida Realtors Christina Papasvice president of the Keyes family of companies in miami. “Housing affordability remains a challenge, and higher mortgage rates may mean that some buyers who previously qualified for a lower rate are forced to rethink their plans. Continued and limited supply means homes are selling at a The median time to contract statewide for existing single-family homes in March was nine days compared to 15 days in the same month a year ago. March 2021.
“Now more than ever, consumers can benefit from the expertise of a local real estate agent who can guide them through current market conditions.”
Last month, closed sales of single-family homes statewide totaled 30,793, down 6.2% year-over-year, while existing condo-townhouse sales totaled 14 631, down 11.4% from March 2021. Closed sales can take place 30 to more than 90 days after the drafting of the sales contracts.
Higher mortgage rates and less pandemic-related buyer demand contributed to lower closed sales, according to Dr. Brad O’Connor. He pointed to several factors that make it difficult to make accurate comparisons between last year’s spring home-buying season and this year’s, running with March data.
“First, last year could really be considered our first spring buying season in two years, as the 2020 season was snuffed out by the onset of the pandemic,” he said. “So there was excess pent-up demand there. Second, the pandemic was still quite severe a year ago and was driving relocations and buying second homes in Florida out-of-state buyers. This still happens today, but not to the same extent. Third, while our single-family home inventory was severely depleted at the start of 2021, there was still some slack in our condo and townhouse inventory at the time. This inventory cushion enabled last year’s massive statewide boom in condo and townhouse sales. And last but not least, mortgage rates were still near record lows last spring. One simply cannot underestimate how much these low rates have helped fuel housing demand during the pandemic. »
The statewide median sale price for existing single-family homes in March was $396,558, up 21.3% from a year earlier, according to data from the Florida Realtors Research Department in partnership with local realtors councils/associations. Last month’s statewide median price for condominium apartments was $308,000, up 27.3% over the previous year. The median is the midpoint; half of the houses sold more expensive, the other half cheaper.
Dr O’Connor said: “With the rising prices we are seeing, despite the decline in sales so far this year, the dollar volume of closed sales remains strong. The dollar volume of single family homes in the first quarter of 2022 stood at $42.1 billionan increase of 11.5% compared to the same quarter last year, while the dollar volume of condominiums and townhouses increased by 16.3%, reaching $16.1 billion.
“The big question over the next few months will be to what extent the recent rise in mortgage rates will slow price growth.”
On the supply side of the market, inventory (active listings) remained severely limited in March as well as for the whole of the first quarter of 2022: existing single-family homes were at a limited one-month supply while the inventory of condominiums and townhouses was at 1.2 months. -month supply.
According to Freddie Mac, the interest rate on a 30-year fixed rate mortgage averaged 4.17% in March 2021significantly higher than the average of 3.08% recorded during the same month a year earlier.
To see the full statewide housing activity reports, go to the Florida Realtors Newsroom at http://floridarealtors.org/newsroom and look under Latest versions or download the March 2022 and PDF of Q1 2022 Data Report under Market Data at: http://floridarealtors.org/newsroom/market-data.
Realtors in Florida® is the voice of real estate in Florida. It provides programs, services, continuing education, research and legislative representation to its 225,000 members in 51 councils/associations. Realtors in Florida® The newsroom website is available at http://floridarealtors.org/newsroom.
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