Florida is one of the most livable states in the US. Their sunny weather, world-class beaches, and diverse culture are just some of the factors that fuel the strong housing market. It’s no wonder why 20 million people have chosen to reside in the Sunshine State.
Here’s what’s been happening in Florida’s real estate market as of the first quarter of 2018:
Housing inventory in Florida
The residential real estate properties in Florida are comprised of single-family homes, townhouses, and condominiums. These single-family homes, which make up a majority of the residential properties in Florida, also include luxury homes, waterfront homes, or golf front homes.
Despite the 5.7% increase in housing inventory across the United States, Florida’s housing inventory has gone in the opposite direction. Based on the 2018 market report from Florida Realtors, the Florida arm of the National Association of Realtors, Florida’s housing inventory has decreased by 7.5%.
This data shows that Florida had 6,919 more active listings in March 2017 as compared to the month of March 2018. The number of new homes for sale also decreased by 3.1%, with only 32,927 new homes being listed in March 2018 as compared to the 33, 984 new homes that were listed in March 2017.
Because of the dip in numbers, housing inventory in Florida remains tight. Homeowners are reluctant to give up their Florida home, leaving buyers paying a premium on the properties that go on the market or settling for homes in less accessible communities.
Market value of real estate properties in Florida
Due to the high demand and tight housing inventory, market prices for single-family homes, townhouses, and condominiums have greatly increased.
As of March 2018, the average price for single-family homes in Florida is $345, 705, which is 8.7% higher as compared to the previous year. Townhouses and condominiums are no exception. They currently list for $268,000, which is 5.1% higher than the average sales price last March 2017.
According to the Florida Realtors, the average sales price for single-family homes, condominiums, and townhouses have been steadily on the rise for the past 75 months or more than six years. As such, Florida real estate remains a seller’s market.
Real estate sales in Florida
The large demand for homes and tight housing inventory has also led to a decline in sales in the Florida’s real estate market. According to the Florida Realtors’ March 2018 report, the number of closed sales for single-family homes has decreased by 3.5% while the number of sales for townhouses and condominiums went down by 1.8%
There is a wide variety of homebuyers, from millennials to baby boomers, who continue to look for residential property in Florida. While entering the Florida real estate market can be a challenge, it also tells homebuyers that when a home goes on sale that fits their budget and must-haves, they should immediately seize the opportunity to buy it.
Fascinated by the strong and growing real estate market in Florida? Let Verona Walk Realty help you invest in Florida’s residential real estate properties. Call Victor Cuccia today at 239-417-3300 or email Vic(at)VWRnaples(dotted)com for more details.