Tight inventory supports price growth despite higher mortgage rates and reduced sales activity.
Source: Original report
Florida's housing market demonstrated resilience in August, with median home prices continuing to climb despite a slowdown in sales. According to Florida Realtors Chief Economist Dr. Brad O'Connor, tightening inventory played a crucial role in supporting prices across single-family homes, condos, and townhouses.
Price Growth Persists
The median sale price for single-family homes in Florida increased by just over 1% year over year, reaching $415,000. This marks the sixth consecutive month of year-over-year price gains for this property type. Meanwhile, the median price for condos and townhouses rose by about 3%, hitting just below $298,000.
'Despite reduced sales activity, the shrinking supply of homes is helping maintain price stability,' O'Connor noted. The price gains occurred even as closed sales dipped in both categories, ending 11-month streaks of year-over-year gains.
Sales Activity Cools
Single-family closed sales fell about 1.5% year over year, while condo and townhouse closed sales declined just under 2%. However, O'Connor emphasized that these declines appear to reflect a market leveling off rather than a significant shift in direction.
Inventory Constraints
One of the key factors supporting prices was the shrinking supply of homes. The number of single-family homes, condos, and townhouses available for sale dropped significantly compared to a year earlier. This limited supply has helped keep prices rising, even as sales growth has slowed.
Mortgage Rates Impact
Throughout much of 2025 and 2026, mortgage rates fluctuated between 6% and 7%. While these changes have been relatively small in the long term, they are higher than rates from a year ago. O'Connor explained, 'We are not witnessing a major affordability shift.' However, he added that 'recent rate increases have been enough to temper home sales growth.'
What to Watch Next
Moving forward, market watchers will be keeping an eye on inventory levels and mortgage rate trends. If inventory continues to tighten, prices could remain elevated. Conversely, if mortgage rates rise significantly, sales activity may continue to cool. Buyers and sellers alike should stay informed about these dynamics to make well-timed decisions in Florida's competitive housing market.
