Flat Incomes, Mortgage Credit Access a Drag on Florida's Housing Market

---

According to the latest housing data from the Florida Realtors, Florida's housing market reported higher median prices, more new listings and gains in inventory during the second quarter of 2014. Closed sales of single-family homes statewide totaled 67,579 in 2Q 2014, up 7.3 percent over the 2Q 2013 figure.
 
"Florida's housing market continued its steady course during the second quarter of 2014," said 2014 Florida Realtors President Sherri Meadows. "As of June, the state's unemployment rate is 6.2 percent. More jobs are being created, which is good news for Florida's economy and a strong housing market.
 
"And in another positive trend, median prices continue to rise, though the pace has slowed somewhat over the past several months. The statewide median price for single-family homes for 2Q 2014 was $180,000, up 22 percent over two years (compared to the 2Q 2012 median price of $147,450); and the statewide townhome-condo median price of $142,000 rose 29 percent looking at the same period ($110,000 in 2Q 2012)."
 
The 2Q 2014 statewide median sales price for single-family existing homes rose 5.3 percent from the same time a year ago, according to data from Florida Realtors Industry Data and Analysis department in partnership with local Realtor boards and associations. The statewide median price for townhouse-condo properties during the second quarter was up 10.1 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.
 
Statewide, new listings for single-family homes over the three-month-period rose 11.5 percent year-over-year, while new townhouse-condo listings rose 2.8 percent.
 
Looking at Florida's townhouse-condo market, statewide closed sales totaled 30,918 during 2Q 2014, down 3.4 percent compared to 2Q 2013. The closed sales data continued to reflect fewer short sales over the three-month period: Short sales for condo-townhouse properties declined 59.8 percent while short sales for single-family homes dropped 52.6 percent. Closed sales typically occur 30 to 90 days after sales contracts are written.
 
"The second quarter numbers show that Florida's real estate market is settling in," said Florida Realtors Chief Economist Dr. John Tuccillo. "While prices throughout the state tend to be up, sales are mixed with single family sales growing, and condos and townhouses declining. There are a lot of reasons for this, but the major factors are the reduced role of bulk investors, along with the difficulties faced by households with essentially flat incomes and thus limited access to mortgage credit. This market is sustainable, but either or both of these roadblocks must be removed if it's to take off again."
 
In 2Q 2014, the median days on market (the midpoint of the number of days it took for a property to sell during that time) was 55 days for single-family homes and 56 days for townhouse-condo properties.
 
Inventory was at a 5.6-months' supply in the second quarter for single-family homes and at a 5.8-months' supply for townhouse-condo properties, according to Florida Realtors.
 
According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.23 percent for 2Q 2014, up from the 3.69 percent average recorded during the same quarter a year earlier.