THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

Following a record-setting pace in 2021, more than 148,000 single-family homes and condos sold across the east coast of Florida in 2022, a decline of roughly 22%. The drop in sales activity was consistent along the northeast and southeast coastlines. However, sales tallies held up better in some counties, with comparatively smaller declines in Brevard and Nassau counties.

By price range, transactions at the upper tiers generally slowed in comparison to most affordable homes in the past year. In 2022, 18% fewer single-family homes sold in the $3.5 million to $5 million range and 12% fewer in the $2 million to $3.5 million range. Conversely, sales of homes priced less than $1 million increased from 2021. In some counties, trends were reversed. Sales of higher-priced homes increased in Broward, Nassau and St. Johns counties.

Within the condo segment, sales totals were mixed. Sales of condo units priced above $3.5 million were on par with a strong 2021, while sales of units priced between $500,000 and $1 million increased by 7%. Sales of units priced between $1 million and $3.5 million fell by 11%. Trends varied by geography as well, with the highest-priced tiers recording more sales than the previous year in Broward and Palm Beach counties in southeast Florida and Duval and St. Johns counties in northeast Florida.

Average Sales Price By County

FLORIDA’S EAST COAST

The median price of transactions closed in 2022 was higher than in 2021, with the median for single-family homes up by 15% and condos 17% higher. Much of the increase in pricing occurred through the summer, with some softening in the second half of the year. Price gains in Clay and Flagler counties paced the northeast coast. At the same time, Palm Beach County singlefamily and Brevard and Martin condos outperformed along the southeast coast.

Buyer demand was resilient in 2022 in the face of headwinds and competition for homes in prime neighborhoods persisted. The average time on market of a sold home in 2022 was 40 days, more than 10 days fewer than in 2021. Time on the market less than 60 days typically indicates a seller’s market. Singlefamily homes sold in less than 35 days, on average. The average condo unit sold in 2022 was listed for less than 47 days, a sharp decline from more than 70 days in 2021.

Median Sales Price

By the end of 2022, slightly more than 33,000 singlefamily homes and condos were listed along the east coast of Florida. Since the close of 2021, single-family home listings have increased by 66% and condo listings by 32%. Despite the surge in listings, the number of available homes remains lower than the historical average. By region, listings increased in southeast Florida and decreased in northeast Florida. Pricing trends for listings varied as well, with the average price of a listed single-family home up by more than 10% in 2022 while the average price of condo listings declined by 3%.

Despite the slower market conditions than the previous year, market activity held up throughout much of the region in 2022. Buyers will adjust to higher mortgage rates and the rebounding equity markets may help fuel cash transactions. A full recovery of international buyers, held back by several factors, including a strong dollar, would boost sales in the coming year.