Florida Housing Market – Slowdown in Price Growth

Realtor.com: Median U.S. listing price down $4K in Aug.

SANTA CLARA, Calif. – Aug. 29, 2018 – Realtor.com’s August housing trend report revealed a surge in price cuts – the second largest drop in the U.S. median list price in three years.

Although competition between buyers remains stiff and list prices continue to rise, the report also found a slowdown in price growth and easing of inventory declines.

“An increase in price cuts suggests that sellers are starting to become more flexible, especially in pricey markets,” says Danielle Hale, chief economist for realtor.com. “However, affordability is a concern in most areas which continue to be sellers’ markets. Fierce competition and low inventory continue to push up prices. While buyers are gaining leverage in some markets, we are still far from a true ‘buyer’s market.'”

The median listing price in the U.S. decreased by $4,000 in August, dropping to $295,000 from a record-high of $299,000 in July – the second largest monthly list price drop since August 2015. While prices are still 7 percent higher than they were one year ago, the year-over-year increase is smaller than the 10 percent year-over-year gain seen last August.

The deceleration in price growth was also observed in the larger markets. The average yearly growth in median list prices in the largest 45 markets combined was 6 percent, down from 8 percent this time last year.

Meanwhile, the number of home sellers cutting their asking price is on the rise, especially in pricey markets where inventory is rising.

Year-to-year increase in owners cutting their original asking price

Jacksonville: Up 4% year-to-year: 24% of listings had price cuts in Aug.
Orlando-Kissimmee-Sanford: Up 3% year-to-year; 26% had price cuts in Aug.
Tampa-St. Petersburg-Clearwater: Up 2% year-to-year; 28% had price cuts in Aug.
Miami-Fort Lauderdale-West Palm Beach: Up 2% year-to-year; 15% had price cuts in Aug.