A slight drop in home inventory is a key indication to economists that home prices may soon rise again. After 16 consecutive months of rising homes available for sale in the U.S., December experienced a drop in a month-to-month comparison to November.
Something to keep in mind when examining the Florida real estate sales trajectory is that Florida does not always follow the same pattern as the rest of the nation. Florida reached its peak in active listings in October, at a high of 108,105. However, from October to November there was a 0.5 percent drop in inventory, and yet another 2 percent drop from November to December.
As the number of homes available shrinks, the ration of buyers to a home increases, which directly affects sales and listing prices for homes.
There is some complementary data showing that prices may have already begun accelerating in some markets. In Florida, the median home prices rose 3.5 percent in November over the previous year. Then again in December the prices rose 6.9 percent year-over-year.
These statistics line up with price fluctuations that we’ve noticed with our own inventory in Manalapan and the Palm Beaches. The price increases in general haven’t been drastic, but they are slowly inching up and there is a lot of interest among buyers for each of our homes. For homebuyers researching the market, it’s wise to invest now.