Tuesday, March 3, 2020

The State of the Florida Real Estate Market In 2020

The State of the Florida Real Estate Market In 2020

 
Forbes has listed Florida cities, including Jacksonville, Miami, and Orlando among the best bets for real estate investors (2019-2020). Last year the market was exceptionally good and the same is expected in 2020. Florida indeed has one of the most rewarding real estate markets. There is a good reason behind all this. Florida is surrounded by the Gulf of Mexico, Alabama, Georgia, and the Atlantic Ocean. It is an international tourist destination. Its economy is dynamic and diverse. The government of Florida encourages pro-development and pro-business mindsets.  If you are looking to make any investments in the real estate market of Florida, this is the right time. Visit NRIA for better guidance and management of property-related matters.

Real Estate Market

Investors in Florida love its real estate market. According to a recent publication by the World Property Journal, the buying and renting of homes in Florida is in great demand.  Home sales have significantly increased by 11% over the past few months. The experts at Florida Times-Union stated that the real estate market of Florida will keep on growing at a rapid rate in 2020. Two main reasons behind this growth: the local economy is getting stronger and the population is increasing.

Market Stats

Let’s take a look at the key market stats:
  • In Florida, median home values have ramped up to 4.1% over the last year. It is estimated to grow by another 3.6% in 2020.
  • The median home value is approximately $238,600. Currently, Florida’s real estate market is ranked as “very hot” (As of October 2019).
  • In Florida’s market, the median listing price of any house is around $294,900, whereas the median selling price is around $227,500.
  • In Florida, 7% of the homes hold a negative equity vs. 8.2% U.S. average.
  • In Florida, 1.4% of the homes hold a delinquent mortgage vs. 1.1% nationally.
  • Approximately 16.5% of the properties listed for sale in Florida have a price cut during their listing period.
  • In Florida, the average period on the real estate market is 83 days.
The key stats for Florida’s real estate market vary by area.  Conduct detailed research on the market by taking into consideration cities, including Miami, Tampa, Orlando, Naples, Tallahassee, and Jacksonville.

Renters’ Market

In Florida, the renter market is also very strong. The University of Central Florida has predicted that “single-family housing will remain in short supply despite housing starts accelerating.” This means there is going to be an in equilibrium, i.e., demand > supply.

Market Stats

The key market stats for a renters’ market are given below:
  • Rental amounts have increased by approximately 30% since 2011.
  • The average rent list price per square foot is $1.36.
  • The median rent is $1,714/month in Florida vs. the median rent is $1,588/month in U.S.
  • The median monthly rents by bedroom in Florida range from $1,494 for a studio unit up to $2,135 for a four-bedroom house.
  • The percentage of rental households keeps on growing. Homeownership in Florida is 65.5%, the lowest level since 1990.
  • Homeownership rates in Miami, Tampa, and Orlando have all fallen below 50% – people are renting rather than owning places.

What’s Ahead for Florida Real Estate?

According to Miami Agent Magazine, the real estate market in Florida is going to be a key factor for its economic growth. Let’s recap how 2019 ended for the market and what’s expected for 2020.
Florida Realtor’s chief economist, Brad O’Connor, stated that, “unexpectedly low mortgage rates were the big story in last year’s housing market, leading to more home sales across Florida than originally anticipated.
“Meanwhile, home prices continued to march upward throughout the year, increasing affordability challenges in several markets across the state. The inventory of homes for sale remains low, and builders are still unable to satisfy the demand driven by Florida’s strong, vibrant economy.
“Primary focus of Florida Real Estate Trends 2020 will be to explore which of these trends will continue throughout the next 12 months.”

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