ORLANDO, FL – Florida’s housing market reported more closed sales, higher median prices and more pending sales during the first quarter of 2017, according to the latest housing data released by Florida Realtors. Closed sales of single-family homes statewide totaled 60,733 in 1Q 2017, up 5.1 percent over the 1Q 2016 figure.

“During the first three months of 2017, traditional sales of single-family homes and condo-townhouses rose in Florida,” said 2017 Florida Realtors President Maria Wells, broker-owner with Lifestyle Realty Group in Stuart. “In another positive sign, pending sales for single-family homes rose 1.8 percent year-over-year, while condo-townhouse pending sales rose 4.8 percent. Distressed property sales continued to drop – which underscores solid stability in the state’s housing market.

“Buyer demand continues to increase, yet the inventory of homes for sale remains tight in many local markets. That’s putting upward pressure on median prices and sometimes results in multiple offers. By working closely with a Realtor who knows local market conditions and trends, consumers have an expert in their corner whether selling or looking to find their dream home.”

The statewide median sales price for single-family existing homes in 1Q 2017 was $226,000, up 10.7 percent from the same time a year ago, according to data from Florida Realtors Research department in partnership with local Realtor boards/associations. The statewide median price for condo-townhouse properties during the quarter was $167,000, up 9.2 percent over the year-ago figure. The median is the midpoint; half the homes sold for more, half for less.

Looking at Florida’s condo-townhouse market, statewide closed sales totaled 26,351 during 1Q 2017, up 7.6 percent compared to 1Q 2016. The closed sales data reflected fewer small sales – and rising traditional sales – over the three-month period: Small sales for condo-townhouse properties declined 38.8 percent while small sales for single-family homes dropped 36.3 percent. Meanwhile, traditional sales for condo-townhouse units rose 16 percent and traditional sales for single-family homes increased 15.1 percent year-over-year. Closed sales typically occur 30 to 90 days after sales contracts are written.

“A shortage of both new and existing homes for sale throughout much of the state continues to drive the Florida housing market narrative in 2017,” said Florida Realtors Chief Economist Dr. Brad O’Connor. “New listings of existing single-family homes in the first quarter were only up one percent relative to the same quarter last year, while the number of closed sales increased by over five percent, thanks in large part to a record-breaking March.

“Homes are also selling quicker this year. Half of the single-family homes which sold so far in 2017 went under contract in 50 days or less, which is nearly a 6 percent drop from the 53-day figure reported at this point last year. Based on these figures, it’s not altogether surprising that the current supply of single-family homes for resale is down by about 5 percent, year-over-year. The rate of new construction in Florida, meanwhile, is increasing but is still well below its historical norms, so relief is not on the immediate horizon.”

In 1Q 2017, the median time to a contract (the midpoint of the number of days it took for a property to receive a sales contract during that time) was 50 days for single-family homes and 55 days for condo-townhouse properties.

Inventory was at a 4.1-months’ supply in the first quarter for single-family homes and at a 6.3-months’ supply for condo-townhouse properties, according to Florida Realtors.

According to Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 4.17 percent for 1Q 2017, significantly higher than the 3.74 percent average recorded during the same quarter a year earlier.

To see the full statewide housing activity reports go to Florida Realtors Media Center.

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WASHINGTON, DC – The strongest quarterly sales pace in exactly a decade place significant downward pressure on inventory levels and caused price growth to further accelerate during the first three months of 2017, according to the latest quarterly report by the National Association of Realtors. Metro home prices have now accelerated for three consecutive quarters.

The national median existing single-family home price in the first quarter was $232,100, which is up 6.9 percent from the first quarter of 2016 ($217,200) and the fastest growth since the second quarter of 2015 (8.2 percent). The median price during the fourth quarter of 2016 increased 5.9 percent from the fourth quarter of 2015.  

Single-family home prices last quarter increased in 85 percent of measured markets, with 152 out of 178 metropolitan statistical areas (MSAs) showing sales price gains in the first quarter compared with the first quarter of 2016. Twenty-five areas (14 percent) recorded lower median prices from a year earlier.

Lawrence Yun, NAR chief economist, says continual supply shortages ignited quicker price appreciation across the country in the first quarter. “Prospective buyers poured into the market to start the year, and while their increased presence led to a boost in sales, new listings failed to keep up and hovered around record lows all quarter,” he said. “Those able to successfully buy most likely had to outbid others – especially for those in the starter-home market – which in turn quickened price growth to the fastest quarterly pace in nearly two years.”

Added Yun, “Several metro areas with the healthiest job gains in recent years continue to see a large upswing in buyer demand but lack the commensurate ramp up in new home construction. This is why many of these areas – in particular several parts of the South and West – are seeing unhealthy price appreciation that far exceeds incomes.”

Thirty metro areas in the first quarter (17 percent) experienced double-digit increases (unchanged from the fourth quarter of 2016). Overall, there were slightly fewer rising markets in the first quarter compared to the fourth quarter of 2016, when price gains were recorded in 89 percent of metro areas. 

Total existing-home sales, including single family and condos, climbed 1.4 percent to a seasonally adjusted annual rate of 5.62 million in the first quarter (highest since first quarter of 2007 at 5.66 million) from 5.55 million in the fourth quarter of 2016, and are 5.0 percent higher than the 5.36 million pace during the first quarter of 2016.

At the end of the first quarter, there were 1.83 million existing homes available for sale2, which was 6.6 percent below the 1.96 million homes for sale at the end of the first quarter in 2016. The average supply during the first quarter was 3.7 months – down from 4.2 months in the first quarter of last year.

Despite a rise in the national family median income ($71,201), the combination of higher mortgage rates and home prices slightly weakened affordability compared to a year ago. To buy a single-family home at the national median price, a buyer making a 5 percent down payment would need an income of $52,251, a 10 percent down payment would require an income of $49,501, and $44,001 would be needed for a 20 percent down payment.

“Last quarter’s robust pace of sales was especially impressive considering the affordability sting buyers experienced from higher prices and mortgage rates,” said Yun. “High demand is poised to continue heading into the summer as long as job gains continue. But, many metro areas need to see a significant rise in new and existing inventory to meet this demand and cool down price growth.”

The five most expensive housing markets in the first quarter were the San Jose, California, metro area, where the median existing single-family price was $1,070,000; San Francisco, $815,000; Anaheim-Santa Ana, California, $750,000; urban Honolulu, $746,000; and San Diego, $564,000.

The five lowest-cost metro areas in the first quarter were Youngstown-Warren-Boardman, Ohio, $79,200; Cumberland, Maryland, $81,800; Decatur, Illinois, $86,100; Elmira, New York, $90,000; and Binghamton, New York, $91,200.

Metro area condominium and cooperative prices – covering changes in 61 metro areas – showed the national median existing-condo price was $218,600 in the first quarter, up 7.1 percent from the first quarter of 2016 ($204,200). Eighty-five percent of metro areas showed gains in their median condo price from a year ago.

Regional Breakdown

Total existing-home sales in the Northeast declined 2.2 percent in the first quarter but are 4.2 percent above the first quarter of 2016. The median existing single-family home price in the Northeast was $255,000 in the first quarter, up 2.2 percent from a year ago.        

In the Midwest, existing-home sales dipped 4.3 percent in the first quarter but are 1.6 percent above a year ago. The median existing single-family home price in the Midwest increased 5.7 percent to $176,600 in the first quarter from the same quarter a year ago.

Existing-home sales in the South jumped 5.8 percent in the first quarter and are 5.8 percent higher than the first quarter of 2016. The median existing single-family home price in the South was $209,000 in the first quarter, 8.8 percent above a year earlier.

In the West, existing-home sales rose 1.6 percent in the first quarter and are 7.4 percent above a year ago. The median existing single-family home price in the West increased 8.4 percent to $342,500 in the first quarter from the first quarter of 2016.

The National Association of Realtors, “The Voice for Real Estate,” is America’s largest trade association, representing over 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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ORLANDO, FL – Wood Partners, a national leader in real estate development and acquisition, announced that it has broken ground on a luxury residential community in Orlando, Florida. Located at the intersection of Grande Lakes Boulevard and Central Florida Parkway, the 314-unit community will offer residents simple access to some of the best that Orlando has to offer.

“Alta Grande is located at the confluence of Orlando’s Tourism Corridor and its largest suburban office submarket,” said Bryan Borland, Wood Partners’ Director of North Florida. “Strategically, the site’s proximity to some of the area’s most desirable attractions and dynamic employers, including Orlando’s only Fortune 500 company headquarters, Darden Restaurants, and its largest luxury hotel complex, the JW Marriott/Ritz Carlton – Grande Lakes, made very clear sense for us.”

The community will feature an abundance of indoor and outdoor recreation areas, including a resort style, zero-entry pool with outdoor kitchen, cabanas and hammock garden. Other amenities include a Zen garden, bocce court, putting green and a large fenced dog park with a dog washing station. In addition, residents will also have access to a substantial fitness center with an adjoining yoga/spin room, as well as a club and game room on the premises.

“This community has been designed to appeal directly to our target, an increasingly discerning renter who seeks the convenience of apartment living without sacrificing the lifestyle amenities and sense of community afforded by a more traditional single-family residential neighborhood,” added Borland.

Wood Partners is a national real estate development company that buys, develops, constructs and property manages high-density and mixed-use communities. It ranks consistently among the top five multifamily developers in the country. The company currently owns 70 properties with a combined total of 20,000 units.

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