Florida’s housing market regained momentum in the third quarter, with prices rising in nearly all of the state’s markets tracked by the National Association of Realtors. Miami recorded a 3.3% annual increase, while national price growth remained modest and affordability continued to challenge buyers, especially first-time purchasers.
Key takeaways
Florida’s recovery stood out against a mixed national market. The latest NAR report found gains across most Florida markets, but also showed higher mortgage costs and uneven price trends across the country.
- Prices rose in 18 of 19 Florida markets tracked; Tallahassee was flat.
- Miami’s median price for existing single-family homes increased 3.3% year over year.
- The national median rose 1.7% to $432,900.
- A typical U.S. family spent 24.1% of household income on mortgage payments.
Florida prices regain ground
The Florida gains follow a period of sluggish growth and price declines in parts of the state. NAR chief economist Lawrence Yun said prices were rising in nearly all Florida markets and suggested that declines elsewhere may prove temporary where local employment and economic conditions remain strong.
The report covered 19 Florida markets. Eighteen posted annual increases in median sales prices for existing single-family homes, while Tallahassee recorded no change. In Miami, the state’s largest market, prices rose 3.3%—nearly twice the national rate.
A strong luxury segment may be helping support the state’s recovery. Sales of homes priced above $1 million rose nearly 10% year over year in August, according to the reporting cited alongside the NAR findings.
National growth remains modest
Across the country, home prices increased in 78% of metropolitan areas during the summer, compared with 80% in spring. The share of markets with double-digit annual gains also eased: 4% posted increases of 10% or more in the third quarter, down from 5% in the prior quarter.
Regional results varied. The Northeast led with a 4% annual increase in its median price, to $561,500, followed by the Midwest at 3.6%, to $342,500. The South rose 1% to $374,900. The West was the only region with a reported decline, falling 0.6% to $629,000.
Mortgage costs remain a hurdle
The typical monthly mortgage payment on an existing single-family home, assuming a 20% down payment, reached $2,251. That was $48 higher than in spring and $69 above the same period a year earlier. Payments consumed 24.1% of a typical family’s income, slightly more than in spring but below the 24.5% share reported a year before.
First-time buyers faced greater pressure. The monthly payment on a typical starter home was estimated at $2,208, up $46 from the previous quarter. First-time buyers spent 36.3% of their income on housing, compared with 36% in spring. The figures highlight how price gains can benefit existing homeowners while making entry into the market harder for new buyers.
Sources
- Home Prices Rebound in Florida as Miami Sees 3.3% Growth, Realtor.com.
- Home Prices Rebound in Florida as Miami Sees 3.3% Growth, Yahoo Finance.