Pent-up pandemic demand cited
Florida real estate sales continue to look up, a sure sign that the Sunshine State’s economy is on the rebound. Despite the pandemic and other challenges, sales volume and prices are back on their usual rise, with lots of unmet demand driving the increases, which should positively impact ancillary services such as insurance.
While home sales were down a little over 20% in both Miami-Dade and Broward counties from the previous June, pending sales were up – nearly 34% in Miami-Dade and 21% in Broward. Analysts say it’s a simple case of pent-up demand. The home sales market took a pause after the pandemic outbreak, right along with most other sectors, as workers figured out how to meet customer needs and conduct business safely going forward, especially with home inspections. Median prices are up as well, about 5% in both counties, June over June. Single-family homes remain the most popular, followed by townhouses and condominiums. Statewide, home sales rose 1.3% in June from a year ago, turning the corner on steep declines in May (36%) and April (21%).
Nationally, new home sales jumped in June by 13.8%, the second consecutive monthly increase, following sharp declines in March and April. Median prices are also rising nationally, up 5.6% from a year ago. Countering the effects of the pandemic are mortgage interest rates, which have hit historic lows. A 30-year fixed rate mortgage is now below 3% for the first time in almost 50 years. Pending sales of all homes are up nationally as well, rising nearly 17% year over year in June. The South continues to outperform the rest of the country.
So some good news, for as we know, home sales bring homeowners insurance sales!
LMA Newsletter of 8-3-20
