Florida Housing Supply Dries Up
The lack of housing construction is a topic I’ve been writing about for years. It’s due to government policies (NIMBY) resistance to new housing development and it’s pushing prices up dangerously high. The pandemic might be helping to suppress some listings and showings
Home buyers in Florida are continually frustrated due a lack of listings. And with President B offering up a free $15,000 tax credit for first time buyers, prices might get pushed up even further.
Finding a house or even a condo here is becoming more difficult as time passes. There are simply too few Florida houses for sale. It’s astonishing how deeply sales were depressed during the shutdown period. Florida Realtors 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.
Houses and Condos Supply
These stats are a little dated now, however they’ve actually worsened in the last year.
In Orlando, house sales grew strongly by 19.4% to 2750 resulting in steep decline in inventory. Supply of homes fell 34.6% to 3,986 homes compared to 6,102 in October of 2019. And inventory of townhouses, duplexes and villas increased 17.8% to 746 from 633 last year. Condo inventory rose 18.2% in September year over year.
In October, Tampa Realtors reported a 47.2% drop in inventory from 4510 homes last October to just 2,383 this year. Inventory of Tampa condos (Hillsborough County) dropped from 1,212 to 894 units (-26.2%). And in St Petes/Clearwater, house inventory dropped 45.4% year over year, from 10,428 to 5,694 units. Condo inventory slipped 24.7% year over year from 3,888 condos to 2,926.
Miami Realtors reported house inventory fell 39.8% from 6,548 homes to 3,941 in October and townhouse/condo inventory also fell 8.4% from 15,295 to 14,004 over the last 12 months.
Up in the panhandle in Bay County, the Central Panhandle Association of Realtors reports a 2% decline in houses for sale, going from 1042 last October to 1021 this October. New condo listings fell 24.3% to 580 units this October from last October. Over the last 3 months, inventories are dropping faster.
A Florida Realtors report showed 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 2024.