Florida’s inventory story in September was even better. Both single-family homes, and townhouses and condos have a 5.2-months supply. This level indicates that the state has a sellers’ market forming. As sellers gain some of the power they lost during the bust, they begin to receive more for their homes. Median prices pressed upward. Year-over-year price improvements were 7.4% for single-family homes and 18.8% for townhouse-condos.
Florida’s economy progressed over the past year. Employment grew 2.8% from September 2011 to September 2012. Nonseasonally adjusted, Florida’s unemployment rate stood at 8.6% in September 2012. In September 2011, the unemployment for the state was 10.6%. We know employment growth links to real estate. Pending sales were up 40% for single-family homes and 30% for condos and townhomes. However, the transition from pending to closed sales did not happen as completely for townhouse-condos, which were down 2.9%, demonstrating that hurdles in the market remain. But for the fifth straight month, closed sales increased for single-family homes. The year-over-year growth was 2.0% in September 2012.
The housing market is headed in the right direction. Builder optimism inched upward to 41 after the huge jump in confidence last month. The level measures builders’ feelings about the economy and housing market. With all this good housing news, market participants should take note. Dr. John Tuccillo, Florida Realtors’ chief economist, says it’s time for serious buyers to take advantage of the Florida housing market now before prices climb higher as the recovery continues.