The Florida housing market is always a hot topic, and 2024 is no different. Whether you’re considering buying, selling, or just trying to stay updated, the latest market trends can make all the difference in your decision-making process. In September 2024, Martin County’s housing market is reflecting many of the trends happening throughout the state, with some notable shifts that you should be aware of.

Closed Sales Are Up, But Listings Are Down

One of the most interesting developments in the Florida housing market is that closed sales have actually increased by about 4%. This is significant because, despite economic fluctuations and the changing real estate landscape, people are still actively purchasing homes. However, there’s a catch: new listings are down by 3%. This reduction in the number of homes hitting the market is adding pressure on buyers, especially those searching for homes in the more affordable price ranges.

The inventory is tight, which means that buyers are finding fewer options available. This dynamic is especially true in Martin County, where the lower end of the market has been impacted the most. If you’re looking for homes priced between $50,000 and $250,000, you only have about 16 listings to choose from. And when you start narrowing that down based on your specific needs—like bedroom count or square footage—those options shrink even more.

Home Prices Are Dipping, But It’s Not All Bad News

When it comes to home prices in Martin County, we’ve seen a slight dip in the median sales price, which now stands at $570,000. This represents a 6% decrease compared to the same time last year. However, this isn’t necessarily cause for concern. Year-to-date, home prices are actually up by 1.7%, which indicates that the market remains stable overall. For potential buyers, this recent price dip could be seen as a good opportunity to enter the market before prices rise again.

For sellers, the news is still positive. Homes are selling close to their asking prices, with properties currently selling within 95% of the listed price. This suggests that, while buyers might have a little more negotiating power, sellers are still in a good position to get a solid return on their investments.

Inventory Remains a Challenge

One of the biggest challenges facing the Florida housing market is inventory. Even though sales are up, the number of available homes is still far below pre-pandemic levels. This lack of inventory is making it particularly difficult for buyers in the lower price ranges to find suitable properties.

In Martin County, there are only about four months of inventory on the market. For a balanced market, six months of inventory is considered ideal. So, we’re still very much in a seller’s market, particularly in the $400,000 to $1 million price range, where demand remains strong.

In this segment, we saw 112 sales in the past month alone. This high demand, combined with low inventory, is making it tough for buyers, especially those who are looking for more affordable options.

New Construction Is Picking Up the Slack

With resale inventory so tight, many buyers are turning to new construction as an alternative. Builders have taken note of the demand and are working to meet it by offering new homes, often with incentives to make the deal more appealing. For buyers who are struggling to find a home in the resale market, new construction offers a viable solution.

However, even new construction isn’t enough to fully meet the demand. Many homeowners are reluctant to sell because they don’t want to give up their low mortgage rates, often locked in at around 3%, which is much lower than current rates. This reluctance to sell is contributing to the inventory shortage.

Rental Market Is Holding Steady, But Future Increases Are Likely

Another important trend to note is that rent prices, which had been rising steadily for years, have finally leveled off. Thanks to an increase in apartment construction and single-family homes built for rent, rental rates have stabilized for now. However, this trend may only last a few years.

With construction on rental properties pausing in many areas, experts predict that the rental market will tighten once again in the next two to three years, leading to potential rent increases. This could further complicate the decision-making process for renters who are considering making the jump to homeownership.

Florida Home Prices Have Skyrocketed Since the Pandemic

If you’re wondering how the Florida housing market has performed since the pandemic began, the numbers are astounding. Home prices in Florida have risen by an eye-popping 66.4% since the start of the pandemic. This dramatic increase in home equity has left many homeowners sitting on valuable properties, but it has also created a dilemma for those who might want to sell.

Where will they go, and can they afford the higher prices and mortgage rates that come with buying a new home? This is a question many sellers are grappling with, and it’s one of the reasons why so many homeowners are staying put, further limiting the number of homes available for sale.

Foreclosures Are Almost Nonexistent

If you’ve been waiting for a wave of foreclosures to hit the market, you might be waiting for a long time. In 2023, there was only one foreclosure in the entire area, and as of September 2024, there has been just one foreclosure this year as well. The low foreclosure rate is another indicator of the market’s strength and resilience.

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