Space Coast Real Estate Market Report January 2023 by McCoy Freeman
by: Bobby Freeman Realtor
BREVARD COUNTY, FLORIDA – Brevard’s housing market reported higher median prices and more inventory (active listings) in January compared to a year ago, where we’ve seen homebuyer demand eroded by the rise of the 30-year fixed mortgage rate from about 3 percent to more than 6 percent.
The median sale price for closed existing single-family home sales in Brevard County this January came in at nearly $350,540, which is still 6.5% higher than last January’s median price. And over in the townhouse and condo category, the median price grew 13.2%, up to $300,000.
Compared to one year ago, single-family home sales this January were down 19.4% percent, which, believe it or not, was the smallest year-over-year decline we’ve had since last October.
“Given that interest rates remain twice as high as they were a year ago, however, this significant decline in sales is not altogether surprising” says Jennifer McCoy of McCoy Freeman Real Estate.
The level of closed single-family home sales we’re seeing has, in recent months, been tracking just below the level of sales we were seeing about four years ago, prior to the pandemic.
High mortgage rates are not only affecting homebuyers, though. They’re also discouraging some potential sellers from listing their homes for sale, as well – particularly those who would be selling their primary residence and would therefore have to finance their next home at these higher rates.
The ratio of active buyers to active sellers is the most important determinant of housing prices. When this ratio is high, you have widespread bidding wars that drive up prices.
That’s what we experienced from mid-2020 until the midpoint of last year. But with mortgage rates dousing our hot demand levels over the course of the past year, that ratio has fallen, and therefore, price growth has cooled off.
However, because these high mortgage rates have discouraged potential buyers *and* potential sellers, this shift in the ratio of active buyers to active sellers has only resulted in a deceleration of overall home price growth, not a full reversal.
A quick recap of the Brevard County Residential Report for January 2023:
- Closed Sales are down -19.4% for January 2023 in which the number of units closed was 621 compared to 770 in January 2022, with an decrease in cash sales of -30.7%.
- New Pending Sales are down -8.8% and New Listings are up 11.2%.
- The Median Sales Price for Brevard Single Family homes is up 6.5% to $350,540 compared to a year ago, which was $329,000.
- Months’ Supply of Inventory is up 187.5% to 2.3 months, an increase from 0.8 months in January 2022.
- Traditional Sales are down -19.4% with a median sales price of $352,540.
- Foreclosure/REO Sales are up 20.0% with 6 closed sales and a median sales price of $247,125.
- Short Sale Closings are down -100.0% with 0 closed sales and a median sales price of (no sales).
A quick recap of the Brevard County Townhouses/Condos for January 2023:
- Closed Sales are down -35.7% for January 2023 in which the number of units closed was 148 compared to 230 in January 2022, with a decrease in cash sales of -19.7%.
- New Pending Sales are down -26.5% and New Listings are up 16.9%.
- Median Sales Price for Townhomes/Condos is up 13.2% to $300,000 compared to a year ago, which was $265,000.
- Months’ Supply of Inventory is up 244.4% to 3.1 months in January 2023 from 0.9 months in January 2022.
- Traditional Sales are down -35.4% with a median sales price of $300,000.
- Foreclosure/REO Sales are N/A with a median sales price of (no sales).
- Short Sale Closings are down -100% with 0 closed sales in January 2023 and 1 closed sale in January 2022.