Florida's Housing Market Wraps Up 2020 Strong Despite COVID-19

Florida Realtors® latest data: Single-family home sales in 2020 up 5.8% year-over-year, median price at $290K up 9.6%. Condo-townhouse sales up 2.5%, median price at $215K, up 12% from 2019. Chief Economist O’Connor: “Sales of Florida homes in the 4Q were very strong.”

Despite the ongoing COVID-19 pandemic and resulting economic challenges, Florida’s housing market wrapped up 2020 with more sales, higher median sale prices and more pending inventory compared to the year before, according to the latest housing data released by Florida Realtors®.

“For much of 2020, our homes became the hub for our daily lives, with people working remotely, children taking classes online, and many restaurants and entertainment options on lockdown due to the pandemic,” says 2021 Florida Realtors President Cheryl Lambert, broker-owner with Only Way Realty Citrus in Inverness. “It’s a testament to Florida’s resilient housing market and ongoing buyer demand that home sales at the end of the year topped 2019’s totals. And with mortgage rates still historically low, buyer interest remains high into 2021 – but record low for-sale inventory levels continue to put upward pressure on prices and availability.”

4Q 2020

Statewide closed sales of existing single-family homes totaled 86,543 in the fourth quarter of 2020, up 23.6% compared to the year-ago figure, according to data from Florida Realtors® research department in partnership with local Realtor® boards/associations. Closed sales typically occur 30 to 90 days after sales contracts are written.

“Sales of Florida homes in the fourth quarter were very strong compared to a year ago,” says Florida Realtors Chief Economist Dr. Brad O’Connor. “Meanwhile, there’s a constrained supply of inventory (active listings), which we’ve been seeing for some time. That shortage, coupled with the very low mortgage rates that are helping to drive buyer demand, keep pushing home values upward.”

The statewide median sales price for existing single-family homes for 4Q 2020 was $306,000, up 14.6% from 4Q 2019. New pending sales for existing single-family homes for the quarter rose 22.2% compared to a year ago, while new listings were up 3.5% from 4Q 2019.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 35,865 units sold statewide in 4Q 2020, up 29.4% compared to the same period a year earlier. The statewide median price for condo-townhouse properties for the quarter was $226,000, up 15% over the previous year. New pending sales for condo-townhouses for 4Q 2020 increased 30.9% compared to a year ago, while new listings were up 5.9% from the same quarter the previous year.

Year End 2020

Statewide closed sales of existing single-family homes totaled 310,378 at the end of 2020, up 5.8% compared to the 2019 figure, according to Florida Realtors® data.

Chief Economist O’Connor noted that by the end of the year, the drop-off in Florida’s housing market from February into early May – due to COVID-19 – had not only leveled out, but sales outpaced the previous year in both the single-family homes and condo-townhouse categories.

“We’ve seen a substantial increase in the dollar volume of sales in 2020, due to increasing sales, rising prices and a greater share of our sales being among the luxury tiers this year (2020) vs. 2019,” he says. “For all residential property types, we were up 20.3% to over $160 billion (total of $162.3 billion) in dollar volume in sales of existing homes in 2020. Florida totaled $124.6 billion in volume in single-family home sales in 2020, up 22.5% from 2019, while condo-townhouse sales reached $36.2 billion in volume, up 13.7% from the previous year.”

Looking to 2021, O’Connor said he expects the trends from the end of 2020 to continue.

“I think we will continue to have robust sales growth,” he says. “As we get closer to vaccination really making a dent in the threat from COVID-19, we might see more people starting to consider upgrading or changing to a different home to take advantage of interest rates while they remain in the low to mid-3% range – which is what most forecasters currently predict.”

The statewide median sales price for single-family existing homes at year’s end was $290,000, up 9.6% from the previous year. New pending sales for existing single-family homes rose 9.2% at the end of 2020 compared to the previous year, though new listings for single-family homes dropped (-2.8%) from a year ago.

Looking at Florida’s year-to-year comparison for sales of condo-townhouses, a total of 119,336 units sold statewide in 2020, up 2.5% over 2019. The statewide median price for condo-townhouse properties at the end of the year was $215,000, up 12% from year-end 2019. New pending sales for condo-townhouse units for the end of 2020 increased 6.2% compared to a year ago, while new listings for condo-townhouses rose 1.1% from year-end 2019.

At the end of 2020 and also for 4Q 2020, inventory (active listings) for single-family homes stood at a 1.8-months’ supply, while inventory for condo-townhouse properties was at a 4.2-months’ supply, according to Florida Realtors®.

The interest rate for a 30-year fixed-rate mortgage averaged 3.11% for 2020, down significantly from the previous year’s average of 3.94%, according to Freddie Mac.

To see the full statewide housing activity reports, go to Florida Realtors Tools and Research section. Realtors® also have access to local market data (password protected) through Florida Realtors’ SunStats resource.

Source: Florida Realtors®