Sunday, May 19, 2024

Bankrate’s Analysis of the Florida Housing Market


Navigating the Florida Housing Market: Trends, Stats, and Predictions

Florida Housing Market: What You Need to Know Before Buying or Selling

Loads of people from all over the country are packing their bags and heading south to sunny Florida. The state has led the country in net migration for more than five years in a row, and the pandemic has only accelerated that population growth.

While Florida’s warm weather and relatively low cost of living have long made it attractive for retirees, it’s also a great spot for those still in their prime working years. Whether they’re searching for an office environment or looking to log on from the beach, Florida offers something for everyone.

However, the real estate market in Florida doesn’t look as sunny as it used to. Mortgage rates have skyrocketed, the cost of homeowners insurance has increased, and homes are staying on the market for much longer. Here’s everything you need to know about the Florida housing market.

Florida Housing Market Overview

Florida is a big state, covering more than 65,000 square miles. Real estate is a hyper-local industry, so what’s happening in one city may be different from another. While the best places to live in Florida naturally include easy access to the beach, there are also inherent downsides and dangers, such as the damage caused by Hurricane Ian along the Gulf Coast.

Climate change could pose long-term challenges for the Florida housing market, with some coastal homes projected to lose 35 percent of their value by 2050 due to rising sea levels.

Florida Housing Market Trends and Stats

– Median sale price: In August 2023, the state’s median sale price was $415,000, up 2 percent from the year before.
– Sale-to-list price: Buyers typically paid 97.5 percent of a home’s list price in August.
– Days on market: The median time to contract for a single-family home was 27 days in August.
– All-cash deals: More than 6,700 single-family homes were purchased in cash in August.
– Inventory: There was a 3-month supply of housing inventory in August.
– Closing costs: The state’s average closing costs total 2.3 percent of the home’s purchase price.

Buyers and Sellers in the Florida Housing Market

For sellers, there is still a shortage of available inventory, giving them the upper hand. However, homes are taking longer to sell, and they are not selling for full asking price. Sellers should price their homes competitively to attract buyers.

For buyers, prices have held relatively steady but are still high. With mortgage rates above 7 percent, now may be a good time to avoid competition. Buyers should compare the cost of living, get preapproved for a mortgage, and negotiate for the best deal.

Florida Housing Market Predictions

Expert predictions do not foresee a housing market crash in Florida. Different locations in the state may have different market forecasts, with major cities like Miami and Orlando being in high demand. Median prices in specific metro areas can give an idea of what to expect.

Find a Florida Real Estate Agent

Whether buying or selling in Florida, having an experienced real estate agent on your side can help navigate the market. Look for an agent who knows the area well and can help you make informed decisions.

In conclusion, the Florida housing market is experiencing growth but also facing challenges. Buyers and sellers should be aware of the current trends and market conditions before making any decisions.

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