Florida real estate market trends for Martin, St. Lucie, Indian River counties in July

Ananya Tiwari, Treasure Coast Newspapers
·4 min read

The Treasure Coast real estate market has been resilient and slowly normalizing this summer, amid low inventory and higher mortgage rates, according to the latest data released in August.

More houses were for sale in July compared to June, but fewer sold. Homes sold faster and prices were down in Indian River County, about the same in St. Lucie County and higher in Martin County.

One driving force in real estate market trends is the 30-year fixed mortgage rate, which averaged 6.81% as of July 27, compared to a low of 2.65 as of Jan. 7, 2021. The rate has been above 6.5% since May 2023, according to an August report by Freddie Mac.

The Federal Reserve has raised the interest rate 11 times since March 2022 to combat inflation.

Federal Reserve Board Chairman Jerome Powell testifies before a House Financial Services Committee hearing on the Federal Reserve's Semi-Annual Monetary Policy Report, on Capitol Hill in Washington, DC, on June 21, 2023. The US Federal Reserve expects to continue raising interest rates but to slow down the pace of hikes, Fed chair Jerome Powell told a Congressional hearing Wednesday.

Low inventory affects real estate market

If no new homes are listed soon, St. Lucie County could see a housing shortage, said David Serle, president-elect of the Broward, Palm Beaches and St. Lucie Realtors. Low inventory has been an issue since 2021, when the coronavirus pandemic spurred an influx of retirees and remote workers to move to Florida for its outdoor lifestyle.

Here's how many months worth of inventory were available in July:

  • St. Lucie: 2.5, up from 2.3 in June

  • Martin: 2.9, the same as June

  • Indian River: 3.1, up from 3 in June

"We are definitely seeing an inventory struggle," Serle said of St. Lucie County. "When we're talking about two and a half months of inventory, it's significant.”

A healthy market has about five to six months worth of housing inventory. During the mortgage crisis in 2008, the area had over 14 months of inventory, Serle said.

High interest rates kept median home sale price in check

Low inventory and higher mortgage rates kept the median sale price from skyrocketing as before:

  • Indian River: $377,500 in July, down 9.03% from $415,000 in June

  • St. Lucie: $390,000 in July, same as June and May.

  • Martin: $610,000 in July, up 1.92% from $598,500 in June

Throughout Florida in July, the number of home sales declined and the annual rate of home price growth slowed. The median price was $415,000 for single-family homes, up 0.7% from $412,000 in July 2022, and $319,000 for condos and townhomes, up 4.6% from $304,971, according to the Florida Association of Realtors.

Closed sales declined across the region

The number of closed sales declined in all three counties in July:

  • Martin: 170, down 11.91% from 193 in June

  • Indian River: 219, down 22.34% from 282 in June

  • St. Lucie: 504, down 10.95% from 566 in June

Throughout the U.S. in July, sales declined 1.9% for single-family homes and 2.2% when including condos and townhomes, according to an August report by the National Association of Realtors.

Active listings

The number of homes on the market increased in all three counties in July:

  • Martin: 473, up from 467 in June

  • Indian River County: 702, up from 685 in June

  • St. Lucie County: 1,219, up from 1,135 in June

Median time to contract

The number of days a house was on the market before a contract was signed was:

  • Martin: 22, same as in June

  • St. Lucie County: 25, down from 29 in June

  • Indian River: 37, down from 44 in June

Home sales are still continuing, shown by "FOR SALE" signs in front of a property in the Vero Highlands.
Home sales are still continuing, shown by "FOR SALE" signs in front of a property in the Vero Highlands.

Resilient housing market

Despite low inventory and higher mortgage rates, the housing market in Florida and the Treasure Coast is proving to be resilient because of the continued though slowing migration into the state.

“Certainly the interest rates have put pressure on the real estate market, but there are so many people coming into the real estate market wanting to call South Florida and St. Lucie County home,” Serle said.

This could signal the market is strong and "normalizing," said Bill Hughes, research director at Kelley A. Bergstrom Real Estate Center at the University of Florida.

“There's a lot of demand, even in the face of much higher mortgage rates — which should be a big damper on the housing market — and a slowing of the migration that we had sort of post-pandemic," Hughes said. "The market is really just settling into a more normal environment.”

Ananya Tiwari is TCPalm's business reporter. You can contact her at ananya.tiwari@tcpalm.com or follow her on X at @Ananyati.

This article originally appeared on Treasure Coast Newspapers: Florida real estate market trends for Martin, St. Lucie, Indian River