Data released by the Florida Realtors shows that the number of single-family residential home sales (78,353) increased 23.1% in the first quarter of 2021 when compared to the number of homes sold (65,602) in first quarter in 2020.
The increase continues a hot resale market which began during the third quarter of 2020 with a 13.7% increase followed by a 23.6% in forth quarter of 2020.
Prices also saw double digit increases during the first quarter of 2021. The median price increased 17.6% to $317,500 in 2021 from $270,000 in 2020. Also, the average price increased 31.7% to $481,591 in 2021 from $365,765 in 2020.
The National Association Realtors (NAR), reported that, nationwide, the median existing-home sales price rose 16.2% in the first quarter to $319,200, a record high going back to 1989.
Based on the NAR, some of the most expensive markets in the U.S. also continued to experience double-digit price growth. One of those markets was in Florida. The Naples-Immokalee-Marco Island market reported a median sales price of $599,500 and sales price growth of 24.9%.
“The record-high home prices are happening across nearly all markets, big and small, even in those metros that have long been considered off the radar in prior years for many home seekers,” said Lawrence Yun, NAR’s chief economist.
“These higher home prices underscore the importance of stepping up housing supply,” he said. “An increase of inventory — either by new construction or by converting abandoned and unused retails or hotels — would combat the affordability problem.”
The median time it takes to sell a home in Florida has fallen from 87 days in first quarter of 2020 to 65 days on 2021. The faster sale of homes has contributed to a decrease in inventory. The first quarter months supply of inventory has fallen to 1.2 months from 3.4 months one year ago.
The months’ supply indicates how long the current for-sale inventory would last given the current sales rate if no additional new houses were built.
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Steve Stewart is the Managing Editor and a contributor at The Florida Capital Star. Email tips to [email protected]