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Corona Virus Pandemic Costing Florida
The Florida housing market is one of the hottest going this year despite continually diminished listings of homes for sale. The lack of housing development and low housing construction is a topic I’ve been writing about for years.
It’s due to government policies (NIMBY) resistance to allowing new housing development and it’s pushing prices up dangerously high at a time of an impending Presidential election.
If listing inventories continue to decline in the fall, we’re likely to see sharp increases in home prices as buyers return to the Sunshine state housing market.
Governor Santis seems to have gotten the Covid 19 pandemic under control and it appears home buyers are back out on the hunt for houses for sale in Florida. With mortgage rates at record lows, buyers are eager to get into the market and save themselves tens of thousands of dollars.
However, finding a house or even a condo here is not an easy task. There are simply too few Florida houses for sale. It’s astonishing how deeply sales were depressed during the shutdown period. Florida Realtor’s reported that Florida actually saw 400,000 fewer home sales due to the shutdown and depressive effects of the Corona Virus pandemic.
Florida home prices are growing at twice the normal rate and selling 12 days faster now. Home listing declines in the Sunshine State are 14.9% less in South Florida and have plummeted 45% in Jacksonville.
The report last Friday from Kerry Smith of Florida Realtors shows significant drops in listings in Florida cities and much reduced days on market (floridarealtors.org/news-media/news-articles/ 2020/09/almost-400k-fewer-homes-listed-due-pandemic).
Kerry reports a select group of Florida cities where fewer listings are occurring:
- Cape Coral-Fort Myers – listings fell 32.8% and days on market reduced by 20
- Deltona-Daytona Beach-Ormond Beach – home listing dropped 43.3% and DOM down by 16 days
- Jacksonville – home listings dropped 44.9% and homes selling 11 days quicker
- Lakeland-Winter Haven – home listings fell 30.8% while homes sold 7 days faster
- Miami-Fort Lauderdale-West Palm Beach – listings decreased 14.9% while selling 5 days faster
- North Port-Sarasota-Bradenton – home listings fell 32.1% and an incredible 21 fewer days on market
- Orlando-Kissimmee-Sanford – listings fell 20.4% and DOM dropped 7 days
- Palm Bay-Melbourne-Titusville – home listings dropped 42.6% while selling 7 days quicker
- Tampa-St. Petersburg-Clearwater – listed homes for sale plummeted 45.1% with 10 fewer days on market
See more of the Florida real estate stats for the residential market on Floridarealtors.org, and the most recent Florida Realtors video discussing the key trends. Florida is one of the hottest markets in a country that is bouncing back economically.
National Housing Inventory Shrinking
Florida Realtors® reported in another news release on late summer home prices rising nationally against a backdrop of dwindling inventory. This lack of housing development and construction could become a major economic issue as Americans move to different cities and states as their jobs permit and as they seek a lower cost of living and improved lifestyle.
They reiterate NAR’s housing market report which showed US home inventory (MLS listings) fell 36.4% from last August and big city inventory plunged 38.1%. The big demand is for single detached properties. See the report on single detached home sales trend.
NARs data show new listings fell 11.85 nationally over the past 12 months and was down 11.4% in large housing markets. August’s national median price came in at $350,000, which is up 10.1% year-over-year. House prices rose 8.9% in larger markets.
NAR reported the biggest decline in house inventory occurred in Indianapolis, Riverside/San Bernardino, and Providence Warwick RI. Inventory decreases from July increased in 34 of the 50 markets cited.
See more on the US housing market and predictions for 2021.
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