October 2021 Florida Real Estate Market Update | Southeast Region
OCTOBER 2021 FL REAL ESTATE MARKET UPDATE |
SINGLE-FAMILY HOMES | YEAR OVER YEAR
The October 2021 FL Real Estate Market update illustrated a continued lack of inventory, an increase in median price, and more cash sales in October 2021, compared to the same month in 2020. Statewide, single-family home sale prices were up 17.7% from October of 2020, inventory down 29.9%, closed sales down 6.8%, and days on the market down 20.9% - It is, however, important to note that a year ago, the housing market hit historic highs due to many factors, mainly, the COVID-19 Pandemic shutdown in the Spring caused many closings to be postponed to the end of summer and into the fall. Other factors include millennials reaching their prime home purchasing years, lower mortgage rates, and a shift in what consumers are liking. Most of these are due to the abnormalities caused by the Pandemic.
Although sales remain high in the second half of 2021, Statewide and the local markets in and around Palm Beach County, showed a general decline in closed sales for October, compared to 2020, with the exception of the City of Lake Worth who had an increase in closed sales of 2.3%. In order to get a clearer picture, it is helpful to look at statistics from 2 years ago. For October, year over year, from 2019 to 2020 single-family closed sales were up over 18%. So although sales overall are down, October 2020's inflated market is likely the culprit.
A FEW NOTES REGARDING THE OCTOBER 2021 FL REAL ESTATE MARKET UPDATE
The average sales price for the Miami Metro Area was up 59.8% in the second quarter of 2021. In the third quarter, the average sales price was up 26.8%. While the median sales price was up 28% in the second quarter, it fell to 19.5% in the third quarter. These declining average and median sales prices suggest that we have reached the top of the market and prices are likely to continue toward a downward trajectory.
Inventory remains low, but the moratorium on foreclosures has expired and loan servicers are beginning to foreclose on over one million Americans that are delinquent on their mortgages. However, the Consumer Financial Protection Bureau has slowed the impending wave of foreclosures by imposing financial counseling requirements on loan servicers.
According to Core Logic, a leading source of real estate market data, the Miami Metro Area has the highest number of mortgage delinquency rates among US metro areas with 6.6% of households in delinquent status as of July 2021.
THE SELLERS MARKET IN FLORIDA'S SOUTHEAST REGION IS HOT, BUT A MARKET CORRECTION IS ON THE HORIZON.