Florida Real Estate Market
The forecast for the State of Florida’s housing market is typical of most housing markets in the US. It’s showing signs of cooling, but not so much in price.
However, a number of factors make the Sunshine State very attractive to Americans. The migration to Miami and the Gulf Coast cities is notable and buyers keep bidding prices up, closing fast and still paying cash for their property.
Florida Realtors reports home sales finally dipped, yet house and condo prices continue to rise. A simple matter of supply and demand. Florida’s real estate market is a unique location in that a huge influx of eager buyers have made the decision to buy property here. As you’ll see in the graphics from Florida Realtors, supply is down, prices are up and people keep buying with cash.
We all know why Florida’s market is heated up and is predicted to continue: low tax, baby boomers want to retire there, and others (working from anywhere) want to buy or rent in the Sunshine State. The value proposition for buyers is excellent, and given the shortage of housing everywhere, the demand is further supported by buyers looking for anywhere to call home.
$400k may seem like a crazy average price, but compare house prices in Los Angeles, New York, New Jersey, Toronto, Florida real estate remains a bargain with a strong demand profile for the next 5 years at least.
April Home Sales Report
Across Florida, new pending sales of properties is down 13.3% while new listings have dropped 1.8% vs one year ago, while prices overall jumped 21.8% to a new record of $410,000.
2022 Florida Realtors President Christina Pappas, said “Home prices continue to be impacted by this shortfall in inventory. When homes are available for sale, they’re going under contract very quickly.”
Here’s Brad O’Connor with all the latest on the Florida Real Estate market for April 2022.
“2021 was characterized by near-record low mortgage rates that allowed for a huge surge in homebuying demand… it’s simply unreasonable for us to expect that the market will perform just as well this year, now that we are in a higher interest rate environment. Closed sales are performing at about the level they were leading up into the pandemic, despite higher mortgage rates, low supply and much, much higher sale prices.” — Brad O’Connor
Median time to contract quickened (27% faster) from 11 days last April to only 8 days this year, and for condos time to contract reduced 58% from 24 to only 10 days last month. Interestingly, sales are still much higher than the historical average for houses and about average for condos.
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It’s never a simple thing to compare to pandemic periods, and as the pandemic finally eases through the second quarter, the market will fully open to investors eager for a vacation to check out available homes in Tampa, Fort Lauderdale, Miami, Boca Raton, Orlando, Boca Raton, Fort Myers, Jacksonville, Panama City and other beautiful Florida locations.
Single Family House Sales
April 2022’s housing sales stats show Florida reigns as one of the most desirable places in the US to live. It has the most vibrant markets too now year round. It compares to Texas, California, Arizona, and Nevada as one of the best US housing markets. Stats show strong sales in the southern US region and immigration to the low tax states including Idaho, Arizona, Texas, and Montana.
Florida closed housing sales History. Screenshot courtesy of Florida Realtors.
Fewer Florida houses are being sold in the lower price range, yet more sales are happening in the higher price ranges, particularly between $300k and $600k.
House prices hit an all time high at $410,000 and there were more than 9,700 cash sales, down 1.5% from last April, and down from March, but still elevated compared to long term averages.
Inventory of Single Family Homes
Single family house inventories grew year over year but are less than a third of their typical long term values.
Condo Stats for April
Florida real estate is still one of the most desirable locations to live, regardless of politics and Covid 19 infections. The climate, low tax, increased entrepreneurialism and more keeps drawing real estate investors and home buyers from everywhere. Cities such as NYC, Boston, Philadelphia, Washington and northeastern cities are where many buyers come from.
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 Buyers and Sellers
Is Florida still the best state to move to?
Florida has one of the hottest US housing market forecasts for 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.
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.
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 April 2022
Wondering which cities might offer the best value in 2022? House prices have increased the most in Tampa, Hommassassa Springs, Cape Coral, Lakeland Winterhaven, Ocala and Punta Gorda, all beautiful locations.
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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See more forecasts on the real estate housing market, and the latest home prices and sales trends for numerous major metros in California including San Diego, Los Angeles, San Francisco, and Sacramento. See stats on other cities, including Denver, Dallas, New York, Boston, Atlanta and in the Florida housing market in Miami and Tampa. Visit linkedin to discover advanced level SEO and real estate marketing services.
Rising mortgage rates, inflation, reduced housing supply and high home prices threaten the markets, it appears 2022’s real estate scene will stay strong. Realtors may want to build their presence this year as house prices decline in 2023. Lower prices will bring plenty of homes onto the market and boost your opportunities.
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