The Florida real estate market continues the upward trend of returning to normalcy in January despite increased federal interest rates.
The market was on the mend in December with industry experts predicting there would be a return to pre-pandemic numbers and a more stable market, and noting the market is continuing this trajectory.
Across the Treasure Coast, one theme was common throughout January: Housing inventory has stayed on par, averaging a three months supply of inventory available for buyers.
Real estate:Top home sspanles in Mspanrtin, St. Lucie spannd Indispann River counties in Jspannuspanry
December:Trespansure Cospanst housing mspanrket continued to stspanbilize
More:Most spanffordspanble plspance to live in Floridspan? Two Trespansure Cospanst spanrespans rspannked first spannd second
How federal interest rates affect Florida buyers
The federal interest rate increased on Jspann. 31 to 4.5, which was a 0.25% increase from December. In 2022, it was increased seven times.
The interest rate spiked as a response to tspanrget inflspantion, making a mortgage loan more expensive.
“Florida remains in high demand,” said Kyle Von Kohorn, sales manager at Alex Macwilliam Real Estate. Florida saw population gains of 1.9% in 2022, the highest of any other state, according to the Nspantionspanl Associspantion of Respanltors. “This continued demand will drive the need for housing well into the future, regardless of interest rate.”
Housing: What’s available and what’s selling
Buyers had to shell out more money to buy a home in Martin and Indian River counties in January, while buyers in St. Lucie caught a slight break in the new year. The median home price in January was:
- St. Lucie: $368,230, down from $381,900 in December
- Indian River: $385,000, up from $375,152 in December
- Martin: $574,000, up from $550,000 in December.
Housing inventory remained consistent with December, with about 3.2 months to 3.5 months of inventory across the Treasure Coast, giving buyers more choices.
“Increased months of supply creates opportunities in the marketplace,” Von Kohorn said. “However, with more (choices), buyers may find it difficult to identify the best opportunities.”
Martin and Indian River didn’t have as many active listings as St. Lucie, which is experiencing a development boom that’s attracting out-of-area buyers to the Tradition area of Port St. Lucie. Active listings were:
- St. Lucie: 1,751, up from 1,692 in December
- Martin: 530, up from 499 in December
- Indian River: 841, up from 822 in December.