by Mike Colpitts 
Pending home sales jump nearly 10% in Florida in August from a year ago as single family home sales show growing strength.
- The boost in home sales carried through to condos and townhouses as Florida shows signs of a rebound in sales.
- The cut in mortgage interest rates by the Federal Reserve is at least partially responsible for the jump.
New pending home sales of single-family homes rose 9.9% in August compared to August of last year, the largest year-over-year increase since last November in Florida when they were up by almost 13%, according to the Florida Realtors Association.
The boost in sales also occurred with condos and townhouses, up almost 5% in August compared to a year ago. It’s the first time condos and townhouses experienced positive year-over-year sales growth in any month since October of 2023.
“The most likely reason we saw such an uptick in new contracts in August is that mortgage rates fell to yearly lows early in the month and fell even further late in the month,” said Florida Realtors chief economist Brad O’Connor. “Rates have continued to decline in September, so it will be interesting to see if even more buyers put homes under contract this month.”
The Federal Reserve cut it’s bench mark interest rates one-quarter of a point last week. It was the first cut in rates in nearly a year and is expected to be the first of many more to come.
“The Florida real estate market is dynamic and the demand for housing in the Sunshine State will continue to grow as time continues,” said Florida Realtors® President Tim Weisheyer. The U.S. Census Bureau says 1,500 people a day are moving to Florida
“Every community is different, and every transaction carries unique challenges,” said Weisheyer. “Realtors not only bring their expertise to help you navigate pricing, inventory, and negotiations, but they also advocate for your best interests at every step.”
Residential real estate sales have been down for the year as higher mortgage interest rates slowed the market. Rates have hovered in the 6 percent range for more than two years after the Fed rose rates nearly three years ago to slow the housing market and contain inflation. However, inflation has run out of control as prices rise in every sector of the economy. Prices on groceries and energy are not included in the government’s inflationary measures but are seen as some of the highest.
The pending home sales jump is likely a major indicator for the Fort Myers area. The statewide median sales price for single-family homes in August was $410,000. Home prices are some of the lowest in Florida in the Fort Myers region, while the statewide median price for condo-townhouse units was $290,000. The median price for a home in the Fort Myers area is $348,000.
Inventory growth seems to be leveling out or at least slowing down once seasonality is accounted for in the region. “That leaves the pop in new pending sales as the big story for this month, thanks to falling mortgage rates,” said O’Connor.