A Deeper Dive into the Current Situation of The Florida Housing Market:
The housing market has a significant impact on the state and federal economy. We all saw how the housing market crash in 2009 led to a global financial crisis. Changing trends can affect the state economy, especially in Florida, Nevada, Delaware, and Arizona.
According to the NRA (National Association of Realtors), real estate comprised 24.1% of Florida’s gross state product last year. Therefore, staying updated with the changing trends becomes necessary when selling or purchasing a property in Florida.
The Current Situation:
Florida’s housing market showed relative stability throughout 2024. According to Redfin, the median home sale price reached $407,700 with a modest year-over-year growth of 4.5%. Aligned with this, Florida Realtors reported a median sale price of $415,000 and an average sale price of $585,701 in February 2024.
A notable increase in both new listings and active inventory was observed. By February 2024, new listings surged to 32,557 compared to 24,373 in the previous year, indicating a 36.5% year-over-year growth. The year-to-date monthly average of active listings stood at 61,486.
It showcases a growth of 47.2% from last year. Despite the increased supply, demand remained steady. In September 2023, there were 141,619 homes for sale, with 40,277 new listings, marking a 10.1% year-over-year increase.
While 14.8% of homes sold above the listing price, this figure represents a decline from previous years. The Florida housing market has shown to be a balanced state till now. There was steady price growth while there was an increase in inventory with consistent demand.
Demographic Factors:
South Florida’s tropical environment has made it a popular place for people to immigrate to. Many people are choosing areas such as Miami, Sarasota, Tampa, Orlando, and Cape Coral to move to. As a result of this movement, Florida has become the fastest-growing state, with a population growth of 1.9% from 2021 to 2022.
The state is witnessing a record number of people migrating to it, with close to 26% of homebuyers planning to move to its metropolitan cities. With an increasing population in the state, the market for real estate will continue to see an increase in demand.
However, the growing demand cannot be met, which could increase property prices as we advance. Nevertheless, this might just be the right time to invest in the housing market.
Regional Analysis; Florida’s Housing Market:
The growth of the Florida housing market varies from region to region. Here is a quick analysis of the different regional areas:
1. Miami:
Miami’s housing market is moderately competitive. Median home prices are $568,750, and homes typically spend 57 days on the market.
Key Trends:
- Home prices increased by 5.5% year-over-year.
- Multiple offers are rare, and homes often sell below listing prices.
- New York residents show significant interest in Miami properties.
2. Orlando:
If we look at Orlando’s housing market overview, we’ll see that it is more competitive than Miami’s. Homes are selling much faster, with a median time on the market of 20 days.
Key Trends:
- The median home price is $355,000, down slightly year-over-year.
- Multiple offers are more common than in Miami.
- Homes often sell close to or slightly below the listing price.
3. Tampa:
Tampa’s housing market is another hot regional area seeing a rapid increase in real estate transactions. It shares similarities with Orlando, displaying moderate competitiveness. The median prices were $415,000, with a slight increase year-over-year.
Key Trends:
- Homes sell relatively quickly, with a median time on the market of 22 days.
- Multiple offers occur in approximately 20% of cases.
- Prices are generally close to listing prices.
4. Jacksonville:
Jacksonville’s housing market is also competitive, with homes spending an average of 38 days on the market and typically spending around 35 days before receiving an offer. While they often sell for slightly below the listing price (around 2%), the market remains competitive, with homes receiving multiple offers.
Key Trends:
- The median home price is $301,395, with a slight increase year-over-year.
- Multiple offers are less common compared to Orlando and Tampa.
- Homes typically sell slightly below the listing price.
An important thing to remember here is that market conditions can change rapidly, which means you can always expect significant housing market movements.
Key Takeaways:
Florida’s housing market varies across regions, with Miami generally being less competitive compared to Orlando and Tampa. Furthermore, home prices and selling times differ between cities. An important thing to note is that New York residents show a consistent interest in Florida’s real estate, particularly in Miami and Orlando.
While overall trends indicate a stable market, local factors and individual property characteristics can significantly influence outcomes. Nevertheless, if you are looking to enter the Florida housing market as an investor, it is best to go through a reliable FL HOA management service provider prior to anything else.
