The number of U.S. homes sold in June rose steadily as more and more buyers opted to become homeowners. This points to several trends in the housing market that affect both buyers and sellers across the country, especially in Florida and the surrounding region. Here is a breakdown of the numbers of increased home purchases, and what it means for today’s Florida home sales.
How Big is the Increase in Home Sales?
Overall, home sales increased by 3.2% from where they were in May, which might not seem like a lot at first, but it adds up to a big impact on the number of home sales. According to the National Association of Realtors, this represents an eight-year high in the number of previously-owned homes on the market. In the South, home sales went up 2.3% to a yearly rate of 2.2 million in June; sales are 7.3% above regional averages for June 2014. The median housing price in the South increased by 7.2% to $205,000. Among existing home sales, condominium and co-op sales rose by 6.6%, which indicates that the current increase affects all home types.
Homes stayed on the market an average of just 34 days in June, which went down from the May average of 40 days. This is the shortest average time spent on the market since this data was first measured in 2011. Industry insiders speculate that this uptick in sales is due to rising mortgage rates as buyers try to secure the lowest interest rate possible. This rush to buy means that many homes are currently selling at or above asking price.
What does This Mean for Florida Home Sales?
The accelerated housing market indicates that demand is rising while supply is shrinking. This adds up to an increase in price across the board as the National Association of Realtors reports here. Houses are selling at a faster rate than they have since 2007, reflecting the housing market’s gradual recovery from the 2009 recession. The median existing-home price in June was $236,400, representing an increase in 6.5% above June 2014. The increase was reported across all major regions, and this widespread trend seems likely to continue. Florida home sales are no exception, with numbers reflecting national and regional trends in existing home buying.
Detailed reports on Florida home sales going up to June 2015 by state, region, and metropolitan area can be found here at the Florida Realtors website. Construction is also picking up as builders across the state provide more housing options to meet rising consumer demand.
The average sale price for a home in Florida rose to $171,968 this past year, an encouraging 4.8% increase that reflects greater consumer confidence going forward. Although some buyers find the options on the market to be limited, high demand and rising housing prices indicate that for the time being this really is a seller’s market. With so many buyers entering the market, now is a favorable time for sellers to take advantage of a marked increase in demand.