The Treasure Coast respanl estspante mspanrket continues stspanbilizing, with some counties now reaching housing inventory levels that experts deem “healthy.”
Earlier this year, the tri-county region experienced record-low housing supply, as out-of-town buyers paid top dollar for properties, which were in high demand but low stock.
Inventory has been increasing steadily throughout the year, particularly in the last six months. From April to October, active listings have jumped:
- 157.2%: St. Lucie
- 94.4%: Martin
- 93.4%: Indian River
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Now the Treasure Coast might soon have enough housing supply to be considered a “healthy real estate market” — about three to four months worth of inventory, according to market data released Friday. In October, the months’ supply was:
- 3: St. Lucie and Indian River
- 2.9: Martin
Industry experts believe a few catalysts are behind the Treasure Coast’s rising inventory and slowing demand: inflation, higher mortgage and insurance rates, and less competition.
Inflation, mortgage rates slow demand
All three Treasure Coast counties have seen declining single-family home sales throughout the year. From January to October, when compared to last year, sales have decreased:
- 28.2%: Martin
- 18.2%: Indian River
- 4.3%: St. Lucie
Houses aren’t flying off the market nearly as fast because of rising mortgage and insurance rates, which can drastically affect what a buyer can and cannot afford.
Mortgage rates have doubled since the beginning of the year and are the highest they’ve been since 2008.
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The 30-year fixed-rate mortgage averaged 6.61% in the week ending Nov. 17, down from 7.08% the week before, according to Freddie Mac.
Higher mortgage rates affect purchasing power. For example, if someone can afford a roughly $1,500 monthly mortgage payment, their budget is drastically different comparing interest rates at the beginning of the year versus now:
- 3.4%: $339,000
- 7.06%: $224,000
Increased inventory stabilizing market
Rising mortgage rates, coupled with sellers capitalizing on high sale prices before the market cools, are increasing existing housing supply on the Treasure Coast.
The additional supply is pushing the market to stabilize, creating a less competitive atmosphere where buyers have more negotiating power.
This has slowed housing demand on the Treasure Coast. In October, the median time to go under contract — meaning when the seller accepts an offer from a buyer — was:
- 24 days: St. Lucie
- 20 days: Martin
- 29 days: Indian River
This is also increasing a property’s time on the market — so buyers don’t have to act as quickly — and leveling home sale prices.
In October, the median, single-family home sale price was:
- $568,250: Martin
- $379,450: St. Lucie
- $364,900: Indian River
These trends combined point to a more normal real estate market ahead for both homebuyers and sellers.