The weather isn’t the only thing that’s been cooler in Brevard lately.
The real estate market is feeling the effects of the move to raise interest rates, according to the Federal Reserve. Florida Realtor Industry data and analytics team.
Closed home sales in Brevard fell 13% in September, with 879 units sold this year, compared with 1,010 units the year before. Cash sales also he fell more than 16%.
Pending new sales are also down, down 30% from September to September. New listings were also down almost 15% month over month.
But the Space Coast could be in even bigger trouble.
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Brevard County was the fourth most overvalued housing market among the nation’s 100 metropolitan areas, according to newly released rankings based on August data. The rankings cover a variety of homes, including single-family homes, townhomes, condos, and co-ops.
“Prices have been clearly revised to reflect the markets buyers need and buyers want,” said Stephanie Dandridge, property adviser at One Sotheby’s International. “This is still a stable pre-pandemic market. It is just a re-education of sellers to understand that their offerings must now be priced fairly and moderately with comps in mind.”
Researchers at Florida Atlantic University and Florida International University found that Brevard’s average home price in August was $369,143, 60.42% above the long-term price trend for home purchases in this market. Researchers say Brevard’s “expected market value” was $230.107.30 for him.
James Ryan Rachel, an agent for Berkshire Hathaway Home Services Florida Realty in Melbourne, agreed prices were volatile.
“It’s been a lot harder lately, and I’ve had to lower the prices on two of my homes to sell them,” he said, adding, “I’m glad the prices have come down and made them a little more affordable.
The only markets overvalued by Brevard were Fort Myers/Cape Coral (70.43%), Boise City, Iowa (62.66%) and Las Vegas (61.08%).
Keller Williams Realty Brevard, Team Tarrant Sales Manager Jesse Gorrell said: “The market has responded to very high demand with very low levels of inventory. The market will do what the market always does, respond to demand or shortages.”
Additionally, the other six Florida markets in the ranking are among the 25 most overvalued housing markets in the nation.
Those included Lakeland/Winter Haven (6th), Daytona Beach/Deltona (7th) and Tampa/St. Petersburg/Clearwater (No. 9), Sarasota/Northport/Bradenton (No. 13), Orlando (No. 22), Jacksonville (No. 24). Miami/Fort Lauderdale/West Palm Beach was his only No. 38 out of the top 25.
But the latest data show that buyers may be looking for more realistic prices going forward as the Federal Reserve continues to battle inflation nationwide.
“We’re seeing a shift in inventory growth and price appreciation slowing,” Gorrell said. “Recently listed properties using pricing strategies from market conditions three to six months ago have had to make price cuts to reflect current interest rates and demand. We have low inventory levels.”
If you’re already a homeowner, there’s some good news in the data.
Brevard’s median single-family home sales price (the point at which half of the homes sell well and half sell well) rose 13.6% to $362,540, up $43,500 from last September.
For the past few years, Brevard’s home has had about a month’s worth of inventory. This is the number of homes available on the market compared to the number of people considering purchasing. Local monthly inventory supply has increased by more than 81% in his two months, approaching his one-month supply increase in September 2021.
Traditional sales are down 12.7%. Foreclosure sales down 66.7% There was only one short sale on the books in September.
“Buyers are ready and capable, but they are more cautious and don’t jump on the first thing they see,” Dandridge said. “Agents have to actually work to sell the property as opposed to the last two years.”
“It used to be that all these big investment groups would come in and take all the properties above their cash value, but now they are taking it much more soberly,” he said. “We even had an investment group back off a deal a week before closing.”
Additionally, the Florida Real Estate Association reported 8,423 single-family home sales in Brevard County in the first nine months of 2022, down 7.0% from the same period in 2021. However, the median selling price he rose 19.4%. to $357,020.
The National Realtors Group reported 2,174 townhouse and condo sales in Brevard in the first nine months of 2022. This is him down 15.6% from the same period in 2021. The median selling price increased 19.1% to $280,000.
In September alone, there were 204 Brevard townhouse and condo sales, down 17.1% from September 2021. The median selling price increased 22.4% to $299.950.