Dear Neighbors,
Although television stations and newspapers are reporting that existing-home sales are sliding nation-wide, “Florida Realtor Sun Stats” paints a very different picture for our local market. When comparing sales data for single-family homes, townhouses, and condominiums from March 2022 to March 2023, the average home price continues to increase. The average sales price for single-family homes increased 2.3% and the average sales price of townhouses and condominiums rose 4.8%. For sellers, this is good news, yet not all market factors are as favorable when putting your home up for sale. We shared in the March newsletter that inventory was growing, and this trend continues. In March 2023, inventory for townhouses and condominiums was 3.8 months and for single-family homes was 5.1 months. This translates to more competition when selling your home. Finally, homes are remaining on the market longer. The graph below displays the median time to contract for single family homes (blue line) and for townhouses and condominiums (green line). As shown, in 2022 properties were staying on the market an average of 13 days, whereas today homes are staying on the market an average of 49 days.
Many condominium owners are experiencing an increase in their HOA fees due to a state-wide increase in insurance costs. In addition, recent legislation requires condominium associations to budget by 2024 for the new requirements regarding structural components, which we explained in our September 2022 newsletter. To offset these costs, some owners are considering renting their units either annually, seasonally (winter months), or off-season (summer months). If owners rent their unit for six months or less, they must charge their tenant a 13% tourist tax: 7% payable to the State of Florida, and 6% payable to Broward County. For more information on how to file and pay this tax to Broward County, go to www.Broward.Org/RecordsTxesTreasury/TaxesFees/Pages/TouristDevelopmentTaxes.aspx. For more information on how to register, file, and pay the tax to the State of Florida, go to www.FloridaRevenue.com/taxes/taxesfees/pages/sales_tax.aspx.
As our winter comes to an end, we say good-bye to many of our seasonal friends and neighbors. See you next winter!
Your neighbors,
Nancy and Justin