Florida Real Estate Market
The strong spring real estate market continues through June with rises in sales, prices and home listings. Just as in most real estate markets in the US, buyer fatigue is showing up in the stats. However, cash sales from investors is keeping it alive.
“Coming out of a record spring home-buying season, the state’s housing market continued its strong gains in June,” says 2021 Florida Realtors President Cheryl Lambert.
More of the home sales occurring are in the higher price categories while sales lower at the more affordable range.
The median sales price for single-family existing homes in Florida in June was $351,000, up 24.5% from last year and up $7000 from last month. The average home price rise is shocking, up $102,200 since last June.
Cash Sales Stats Telling Us a Lot
Cash sales rose 5% to reach 24% of transactions so it’s clear a financially enabled group of buyers is dominating the market. If you’re considering selling your home now for cash check out the post on iBuyers.
Florida Realtors’ Chief Economist, Brad O’Connor, notes a rise in the percentage of single-family home sales paid in cash in price tiers below $400,000, which he attributes to more purchases by investors. He said further that “Florida’s red-hot rate of home price growth could begin to cool down somewhat in the coming months, although that will also depend on whether interest rates start to trend higher again, as well. For now, though, the numbers continue to astound.”
Florida’s condo market has come alive this year, as condominium sales hit 16,155 units for the 4th straight month of strong sales. June’s sales volume rose 79.6% vs last year. Naples, Ocala, Panama City, Port St. Lucie, and Punta Gorda were the biggest drawing cities. Not surprising given the beauty and safety of these areas. Buyers may want homes in these cities, but may settle for condos as the pandemic eases. Florida is experiencing a prolonged battle with the Delta variant, and shutdowns may cool the market a little for the next few months from regular buyers, but perhaps not investors.
See the Florida Real estate stats below for June of 2021.
The Allure of Florida Strong Despite Prices
Price is a good barometer of buyer preference and intent.
Florida’s gorgeous climate is a huge draw for most buyers of home here. While Florida was considered a dead end back 30 years ago for snowbirds and tourism workers in decades past, the state has diversified its economy from agriculture in the middle to tech in the south (See Miami real estate forecast. Much of the state’s housing market is quite affordable compared to other locations such as Los Angeles, New York, Atlanta, Dallas, Denver, San Francisco, Boston, Philadelphia and Chicago.
Hot Topic for 2021/2022
Is Florida still the best state to move to?
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Single-family home sales in Florida rose 23.6% year over year, statewide in June totaling 34,165 units (up from 30,950 sales in May). Pending sales (those put under contract) hit 30,039 down from 31,647 in May. With respect to housing inventory, active house listings rose by 2400 units to 34,487. New house listings rose by to 35,549 units up about 750 homes which is up 21.6% vs last June.
June condo sales for June totaled , which up 155.2% over May 2020 and the median price for condo-townhouse units rose 24% year over year to $250,000.
Florida has one of the hottest US housing market forecasts for 2021, 2022 and beyond, and predictions are that bidding wars will be common. Buyers from New York, Boston, Philadelphia, Chicago, Atlanta, and Toronto are eager to own a home in Tampa or Miami and other beautiful FL cities.
See the Tampa St Petes and Miami real estate reports. As detailed in this epic report on Florida’s real estate scene, home prices will always rise against a lack of supply. Add on the hope of the economic recovery in July or August, and the stage is set for rocketing home prices across the Sunshine state. The price of lumber, land, and steel along with labor shortages are going to impinge on the Florida state housing market as well.
Dollar volume of condo sales is up 143% vs June 2020 and cash sales are up 113%. It’s obvious that investors are buying into the Forida condominium market ahead of a buying wave. The fall season could see strong sales as snowbirds and immigrants re-enter Florida.
Why are condo and townhouse sales increasing so much relative to single-family home sales? “For one thing, there is just so little single-family inventory available, especially in more affordable price ranges,” said Florida Realtors Chief Economist Dr. Brad O’Connor.
This year, as Covid 19 vaccine distribution accelerates and Federal stimulus begins to pour onto cities and states, there will be few breaks for homebuyers wanting to realize their dream of buying a home in Florida. Inflation is an issue for buyers but perhaps a tail wind for owners who might consider selling. With people buying in Florida however, they may not want to sell unless they can flip it for a big profit.
So although new listings are rising, we’ll have to see how long that supply can hold out. Florida Realtors may not anticipate big price increases, but with an inflationary outlook, Florida real estate may take on a more golden hue for investors of all kinds.
Few states offer the housing opportunities Florida possesses and with foreign buyers searching online, there is huge potential for homeowners to receive record breaking selling prices.
Florida Realtors believed rising interest rates would moderate demand and prices, but I think it’s unlikely. The Fed has promised continuous low rates and said inflation is not an issue. There is pent up demand, low construction numbers and rising savings and wages to lay down on a Florida home.
Real Estate Sales Charts June 2021
New House Listings
Always an important indicator of market trends, new listings rose slightly again in June.
Housing inventory Keeps Sinking
Inventory shrinks, especially in the lower price category. The MSI is now down to 1.1 months.
If buyers are buying houses and condos in Florida, it means they’re seeling in the North (Manhattan, New York, Boston, Philadelphia, Atlanta, Chicago, Washington, Baltimore, New Jersey, Cleveland, Indianapolis, Minneapolis, etc) to find single detached homes anywhere. They’re looking for safety from Covid 19 and more room and nice weather to work in.
The forecast for the next 3 months is stronger than normal, leading into a 6 month growth period of unusual intensity. The 5 year real estate market outlook for Florida looks promising. This should encourage buyers to pay more and sellers to demand more for hard to find houses.
Florida Population Growth Outlook
A study/prediction by http://edr.state.fl.us/ suggests Florida’s population will grow by 60,000 over the next 3 years ( a compound growth rate of 1.53%).
The edr.state study also shows further that population growth may begin to decline, death rate to climb, and household size begin to shrink after 2023. Overall, net migration is predicted to remain high which supports long term house prices.
House Prices by City in June 2021
Wondering which cities might offer the best value in 2021? House prices have increased the most in Destin/Fort Walton, Homosassa Springs, Naples, Sarasota Bradenton, Pensacola, Punta Gorda, Melbourne, Miami Fort Lauderdale, and Cape Coral.
Condo Sales Stats for June 2021
The condo market in Florida is surprisingly alive and well now as the pandemic health fears subside. And we wonder if high demand for Florida condos will be from buyers who are priced out of the single detached market. Those returning to work in Miami will likely create price pressure in that market.
Condos sales grew by about 9400 units year over year to a monthly total in May of 17,330. This is 155% more than 12 months ago. Month to month, sales fell about 1800.
Fewer listings is typical of the national housing market, or housing markets in Boston, Tampa, Miami, New York, California, Dallas , Denver, or San Diego. Homeowners are very reluctant to sell in this economic climate. More stats on Florida homes for sale below.
Why the demand for Florida real estate?
Here’s a few good reasons why the brisk search for Florida homes for sale:
- low mortgage rates
- low Florida taxes
- people getting in before the boom and rocketing Florida prices
- greater square footage living
- economic concerns and debt in Northeastern states
- more houses in the south vs apartments in the north
- Covid 19 outbreaks continue among the stubbornly unvaccinated
- buyers thinking ahead to new winter with the Florida warmth, sunshine, beaches and water, and year-round activity; no -40 or shoveling snow in Florida
- economic diversity in the Sunshine state
- coming boom of recreation and travel
- pent up consumer demand returns in a wave
- the reduction of work shutdowns
These and more might be the key factors driving the relentless growth of the Florida housing market. It should keep Florida Realtors busy and happier.
The Much Desired Florida Real Estate Market
Florida has a lot going for it. Lower-income and property taxes, warm weather, no estate taxes, and incredible recreation and beaches make this state the most desirable place (i.e, for New Yorkers and Manhattanites) to buy a home. While California cities are in freefall from evaders, Florida cities including Boca Raton, Miami and Tampa, are often among the best cities to buy real estate. Compare to home prices in Texas, Georgia, Colorado, or California.
The key stats below might be active listings and initial listing prices. They show a severe downward trend in homes for sale available, particularly at cheaper prices, and that listings are still growing in the upper price tiers.
Given the devastation of the Corona Virus pandemic shutdown, Realtors did a good job keeping the market thriving. From Boca Raton, to Miami to Tampa, as in all US housing markets, the forecast is a full return by summer of 2021.
Luxury Homes in South Florida
Tampa Bay Home Sales
In Tampa and Hillsborough County, the median listing home price in Tampa, FL rose 15.5% year over year to $350K. The median home sales price reached $340K. Days on market in Tampa, FL dropped slightly to 46 days.
In Miami Dade County, Miami Real Estate see best June sales month ever as existing condo sales jumped 212.8% vs last June. Miami-Dade County total home sales surged 114.3% year-over-year in June 2021, from 1,893 sales to 4,057. Miami single-family house sales went up by 41.6%, from 1,089 to 1,542. And existing condo sales in Miami grew 212.8%, from 804 to 2,515 units.
The big rise in sales is being attributed to pent-up demand, more U.S. individuals and companies moving to South Florida, and record-low mortgage rates.
See more on the Miami real estate market picture.
Businesses and real estate offices continue to open, and more business is being done online. Search data for real estate shows buyers are doing a lot of searches online for houses for sale.
Economic Challenges ahead for the Sunshine State
Slowing Tourism: What will happen with prices in 2021 if there is a vaccine and travel to Florida returns full tilt?
Disney World closing, Cruise lines docked, NHL hockey and NBA basketball cut short, MLB baseball training canceled, spring break vacation canceled, and restaurants closing. Florida’s $40 billion tourist industry is primed to return.
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Florida Housing Market Forecast – copyright Gord Collins
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