Florida’s real estate market ended July with positives for both potential buyers and sellers as inventory levels are on the cusp or returning to normal and home prices are up. According to our analysis, inventory levels increased by about. 3.9 percent on a month-over-month basis, while home prices increased by 15.6 percent on a year-over-year basis.
Data Set
Movoto’s Florida State of the Real Estate Market report surveyed the 10 largest cities in Florida. For the report, we analyzed data in two areas: inventory and median list price per square foot. These were subdivided to examine year-over-year and month-over-month trends, with analysis and commentary on noteworthy points. All data used in the report was taken from each cities’ Multiple Listing Service.
Inventory – Year Over Year
Across the 10 cities we track, inventory changes were split on a year-over-year basis. Five cities had an increase in inventory, while another five saw a decrease. However, inventory fell by 3.5 percent overall. In July 2012 there were 20,970 homes for sale, compared to the 20,240 at the end of July 2013.
To add context, according to our monthly State of the Real Estate Market report, which looks at 38 geographically diverse cities across the country, national inventory dropped by 16.2 percent during the same time.
The Florida city that saw the greatest decrease in the number of homes for sale was Pembroke Pines. In July 2012 there were 557 homes for sale, compared to 420 homes on the market during the same time in 2013. This is a 24.6 percent decrease.
At the opposite end of the spectrum, Hialeah saw a significant increase in the percentage of homes for sale at 18.8 percent. In July 2012 there were 303 homes for sale; at the end of last month there were 360, an 18.8 percent increase.
Inventory – Month Over Month
While inventory levels in Florida decreased on a year-over-year basis, the number of homes going on the market increased on a month-over-month basis. This is good news for potential home buyers, and marks a reversal of a recent downward trend. This is the second straight month that inventory levels increased. Still, the increase in homes for sale is not surprising. Typically, more homes come onto the market during the warmer months of the year, which are considered the most active in the real estate industry.
At the end of July 2013 there were 20,240 homes for sale, compared to 19,482 in June 2013. This is a 13.9 percent increase.
When compared to the same time in 2012, the market would appear mixed. There were fewer homes on the market last month than during July 2012, which we detailed above. However, from June 2012 to July 2012, the inventory levels actually decreased, while from June 2013 to July 2013 inventory increased.
Inventory – Noteworthy
Since 2010, inventory declined by about 50 percent, a staggering number. There is some good news, however. While inventory has declined for the past 19 months straight, the rate of the decline slowed in July. Home buyers should be optimistic, as more choices are coming on the market, which will decrease competition and likely increase buying power.
Price – Year Over Year
In the past year, all 10 of the cities we track in Florida had an increase in the median list price per square foot. Overall, the price for a home in the Sunshine State increased by 15.6 percent from 2012 to 2013. In July 2012 the median list price per square foot was $115; this increased to $133 in July 2013.
By comparison, according to our monthly State of the Real Estate Market report, national prices rose 14.9 percent from July 2012 to July 2013.
The increase in Florida home prices is significant; however, this rapid pace is unlikely to continue. In the next couple of months, we expect that home appreciation levels will return to the single digits.
The city that saw the greatest increase in price was Orlando. Homes in the city increased by 22.5 percent in one year. In July 2012 the median list price per square foot was $71, while a year later the price was $87.
Price – Month Over Month
Compared to June 2013, home prices in Florida remained about even. In June, the median list price per square foot was $134, while in July the price was $133. Homes prices were also flat during the same period in 2012, moving from $114 to $115. Prior to July 2013, the median list price per square foot had risen for 12 straight months.
Analysis
Based on our data, the Florida market is near an equilibrium, making it both a good time for home buyers and sellers. This is because home prices are up, benefiting sellers, and inventory is up, which decrease competition for buyers.
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