TRENDS | DECEMBER MARKET REPORT

MARKET REPORT DECEMBER 2021

TRENDS

TODAY’S REAL ESTATE
ALONG FLORIDA’S EAST COAST

LOCAL EXPERTISE WITH A GLOBAL PERSPECTIVE

􏰁 a􏰂 t􏰃r􏰄lle􏰅 to s􏰃are our latest 􏰂ar􏰆et re􏰇ort t􏰃at 􏰈􏰉􏰊 􏰋ot􏰃e􏰌􏰍􏰎s 􏰁􏰏ter􏰏at􏰄o􏰏al 􏰐ealt􏰍 􏰃as 􏰅e􏰑elo􏰇e􏰅 􏰄􏰏 􏰇art􏰏ers􏰃􏰄􏰇 􏰒􏰄t􏰃 􏰐ose􏰏 􏰓o􏰏sult􏰄􏰏􏰔 􏰕rou􏰇􏰖 t􏰃e lea􏰅􏰄􏰏􏰔 􏰄􏰏􏰅e􏰇e􏰏􏰅e􏰏t real estate e􏰗o􏰏o􏰂􏰄􏰗s 􏰗o􏰏sult􏰄􏰏􏰔 􏰘􏰄r􏰂 􏰒􏰄t􏰃 o􏰘􏰘􏰄􏰗es 􏰄􏰏 􏰙er􏰆ele􏰍 a􏰏􏰅 􏰉e􏰒 􏰚or􏰆􏰛

􏰁􏰏 our e􏰘􏰘orts to 􏰇ro􏰑􏰄􏰅e 􏰃􏰄􏰔􏰃􏰜􏰝ual􏰄t􏰍 a􏰏􏰅 a􏰗􏰗ess􏰄􏰌le 􏰄􏰏􏰘or􏰂at􏰄o􏰏 to 􏰔u􏰄􏰅e our 􏰗l􏰄e􏰏ts 􏰒􏰄t􏰃 su􏰇er􏰄or 􏰄􏰏s􏰄􏰔􏰃ts a􏰏􏰅 a strate􏰔􏰄􏰗 􏰇ers􏰇e􏰗t􏰄􏰑e o􏰏 real estate􏰖 􏰒e 􏰗o􏰏t􏰄􏰏ue a􏰏 u􏰏􏰂at􏰗􏰃e􏰅 􏰗olla􏰌orat􏰄o􏰏 􏰒􏰄t􏰃 a truste􏰅 a􏰅􏰑􏰄sor to to􏰇 􏰇u􏰌l􏰄􏰗 a􏰏􏰅 􏰇r􏰄􏰑ate real estate or􏰔a􏰏􏰄􏰞at􏰄o􏰏s􏰛

􏰟ee􏰇􏰄􏰏􏰔 a 􏰗lose e􏰍e o􏰏 t􏰃e 􏰂ar􏰆et allo􏰒s us 􏰌etter to a􏰅􏰑􏰄se our 􏰗l􏰄e􏰏ts 􏰒􏰄t􏰃 t􏰄􏰂el􏰍 a􏰏􏰅 rele􏰑a􏰏t 􏰆􏰏o􏰒le􏰅􏰔e􏰛 􏰐ose􏰏 􏰓o􏰏sult􏰄􏰏􏰔 􏰕rou􏰇 􏰃as su􏰗􏰗ee􏰅e􏰅 at 􏰇ro􏰑􏰄􏰅􏰄􏰏􏰔 􏰄ts a􏰏al􏰍t􏰄􏰗al a􏰇􏰇roa􏰗􏰃 a􏰏􏰅 􏰔lo􏰌al 􏰑􏰄e􏰒􏰇o􏰄􏰏t􏰖 al􏰄􏰔􏰏e􏰅 􏰒􏰄t􏰃 t􏰃e lo􏰗al e􏰠􏰇ert􏰄se o􏰘 our real estate 􏰇ro􏰘ess􏰄o􏰏als􏰛

􏰡􏰃e 􏰂ar􏰆et 􏰗o􏰏t􏰄􏰏ues to e􏰑ol􏰑e􏰖 a􏰏􏰅 􏰃ea􏰅s 􏰆ee􏰇 tur􏰏􏰄􏰏􏰔 to 􏰢lor􏰄􏰅a􏰎s 􏰊ast 􏰓oast􏰛 􏰣􏰄a􏰂􏰄 􏰤rt 􏰥ee􏰆 􏰌rou􏰔􏰃t e􏰠􏰗􏰄te􏰂e􏰏t to all o􏰘 us as 􏰒e sa􏰒 real estate a􏰔e􏰏ts􏰖 e􏰏tre􏰇re􏰏eurs a􏰏􏰅 􏰄􏰏􏰑estors 􏰗o􏰂􏰄􏰏􏰔 to􏰔et􏰃er 􏰒􏰄t􏰃 a s􏰃are􏰅 􏰇ass􏰄o􏰏 􏰘or art a􏰏􏰅 􏰗ulture􏰛

􏰥􏰃􏰄le 􏰢lor􏰄􏰅a 􏰗at􏰗􏰃es outsta􏰏􏰅􏰄􏰏􏰔 atte􏰏t􏰄o􏰏 􏰘ro􏰂 all arou􏰏􏰅 t􏰃e 􏰒orl􏰅􏰖 o􏰇􏰇ortu􏰏􏰄t􏰄es 􏰘or 􏰄􏰂􏰂e􏰅􏰄ate relo􏰗at􏰄o􏰏􏰖 a l􏰄􏰘est􏰍le 􏰗􏰃a􏰏􏰔e􏰖 or lo􏰏􏰔􏰜ter􏰂 􏰄􏰏􏰑est􏰂e􏰏t 􏰗o􏰏t􏰄􏰏ue to sur􏰘a􏰗e a􏰏􏰅 our 􏰔lo􏰌al real estate a􏰅􏰑􏰄sors re􏰂a􏰄􏰏 􏰗o􏰏􏰏e􏰗te􏰅 􏰘or our 􏰗l􏰄e􏰏ts􏰛

􏰥􏰄t􏰃 􏰔rat􏰄tu􏰅e􏰖

ABOUT TRENDS:

ONE Sotheby’s International Realty presents the only market report focused on Florida’s East Coast. From Miami to Cocoa Beach, data is presented from a macro perspective down to city level.

Data is sourced from local Multiple Listing Service (MLS) organizations. Written analysis created in partnership with the Rosen Consulting Group,

a nationally recognized consulting firm and trusted advisor to top public and private real estate operators and capital providers.

Daniel de la Vega

President
ONE Sotheby’s International Realty

THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

DEC 2021

The Florida East Coast housing market headed towards a strong finish to the year, with home prices continuing to increase. In part driving the price gains, housing demand was bolstered by continued job creation and wage growth. Migration into the region continued to rebound, with younger households attracted by job opportunities and low unemployment rate as well as some households relocating for affordability reasons. Strengthening economic conditions and still-low mortgage rates should expand housing demand despite strong price gains that will curtail affordability.

AVERAGE SALES PRICE BY COUNTY

FLORIDA’S EAST COAST

NOV 2020 NOV 2021

The lack of homes remained the primary constraint
on the market, limiting sales activity despite the elevated buyer demand. In November, nearly 9,800 homes and condos sold in the region, on par with the previous month. Notably, sales volume for both single family homes and condos was stable from October. This contrasts with recent months where the greater availability of condo inventory in many counties helped allow sales to accelerate. As excess condo supply is absorbed, sales activity should more closely align with the single family sector.

NOV 2020 NOV 2021

SINGLE-FAMILY HOMES

CONDOMINIUMS

INVENTORY DOWN 50% SINCE JANUARY

The total number of for-sale listings decreased by nearly 7% in the last month, falling below the 20,000 home threshold for the first time in this cycle. Since the beginning of the year, inventory has fallen by more than 50%, underscoring the degree to which buyer demand has outweighed new listings coming on the market. With such a large imbalance of demand and supply, it is not surprising that prices reached record levels in many neighborhoods.
With dwindling inventory and strong sales activity,
the months of supply continued to fall. At the current sales pace, condo inventory would be absorbed within roughly 2.5 months. In the more supply constrained single family home sector, inventory would be exhausted in less than 1.5 months if no additional homes came on the market.

MEDIAN SALES PRICE

FLORIDA’S EAST COAST

BUYERS WILLING TO COMPROMISE

In the last few months, the average days on market increased slightly. While an increase often marks a slowing housing market, in this case the lack of supply is driving more buyers to consider homes that have sat on the market for longer than expected, which is leading to the increase in the average days on market. While newly listed homes are often put into escrow quickly, potential buyers that find themselves outbid are increasingly turning to available homes that, for various reasons, have not yet sold. This highlights that some buyers are increasingly compromising on location, amenities and other features in order to gain entry to the ownership market. Roughly 26% of sales closed at greater than the list price, slightly down from the peak in July and August. Competition was elevated in the single family segment relative to condos, with approximately 33% of single family homes sold above asking price while 19% of condos sold for more than the list price. While the share of condos closing greater than the asking price was much lower than single family homes, since 2020 that share has tripled, highlighting the rapid recovery of the condo market in many neighborhoods.

$470,000 2%

THE REAL ESTATE MARKET ALONG FLORIDA’S EAST COAST

DEC 2021

MEDIAN PRICE CONTINUES TO INCREASE

Driven by strong demand, the median price continued to increase throughout the Florida East Coast. The median price of condos increased by more than 6% in November to reach a record-high of $282,000. The single family home median price increased by more than 2% from

the previous month. While the increase in pricing strains affordability, buyers continued to compete for quality homes. In November, roughly 26% of sales closed at greater than the list price. Tighter conditions in the single family home segment magnified this trend, with nearly 33% of sales closing above the asking price.

With few prospects for inventory to increase substantially in the coming months, sellers in most neighborhoods

AVAILABLE INVENTORY

FLORIDA’S EAST COAST
SINGLE-FAMILY HOMES AND CONDOMINIUMS

will continue to hold leverage over buyers. The elevated demand should spur further price increases even
as mortgage rates may increase next year. Housing affordability will increasingly become an issue for some households, particularly potential buyers of starter homes and smaller condo units, though the surge

in apartment rents may complicate the own/rent decision. The overall trajectory of the economy, as well
as prospects for a full recovery of tourism activity, will remain influenced by the pandemic. Despite potential headwinds, the Florida East Coast housing market should end this year on a positive note with strong prospects for continued growth into 2022.

Sep 2021

Oct 2021

↓9%

Nov 2021

↓ 10%

↓14%

↓8%

↓7%

↓6%

SOLD ABOVE LISTED PRICE

FLORIDA’S EAST COAST

NOV 2020

SINGLE-FAMILY HOMES

NOV 2021

ABOVE LISTING PRICE

MEDIAN SALES PRICE

NOV 2020

AT LISTING PRICE OR LOWER

AVG SALES PRICE PRICE PER SF

NOV 2021

CLOSED TRANSACTIONS

CONDOMINIUMS

HIGHEST SALES

FOR SALE