Investing in real estate requires careful consideration and understanding of the housing market, both nationally and locally. As national trends continue in a positive direction, so does the Florida housing market. In fact, Florida is predicted to be one of the best places to invest in real estate both this year and beyond. If you find yourself in a position to purchase a home in Florida, here are 5 things to know about the Florida housing market.
Apart from being one of the most popular tourist destinations in the United States, Miami and Orlando both make the list for the top 50 most visited cities in the world. With an average of 237 days of sunshine each year (and more, depending on the city), gorgeous beaches, and plenty to do and see, it is no surprise that Florida is a prime destination. But tourism isn’t the only thing driving the Florida housing market.
Housing markets are largely influenced by factors other than just demand. Are there enough jobs to accommodate continued growth? Are younger generations choosing to buy, increasing the need for housing? When it comes to Florida, the answer is, yes. As unemployment rates decrease, the population increases, and property taxes stay below the national average, there is more than one reason to consider Florida for your next move or real estate investment.
The median home value in Florida at the end of 2019 was $237,000, up more than 4% from the previous year. Home prices are predicted to continue increasing, some outlets citing a 2% increase, and others predicting growth comparable to 2019.
These increases put the median home price in Florida above the national average, but Florida’s housing market remains far more affordable than that of other popular destinations, including New York and California. While the state averages continue to grow, many parts of Florida retain housing costs far below the state and national average, meaning there is a home price that works for just about any potential Florida home buyer.
The rising home values and the increasing number of home sales in Florida are, in large part, due to an incredible population and job growth. Florida’s unemployment rate is at a record low of 3.0%, and nearly 300,000 job openings are available for those seeking employment in the state.
On top of that, the state’s economist predicts another 200,000 new jobs will be added this year, leaving plenty of opportunity for the estimated 900 people who will move to Florida each day. All of these increases have a huge impact on the Florida housing market. New renters and home buyers mean the demand for housing is increasing. Because the number of listings has decreased—even if slightly—the high demand is playing a role in the increasing prices. The good news? Florida’s housing market will continue to thrive as the population increase boosts the economy.
In 2019, experts predicted mortgage rates in Florida to rise. Instead, home buyers and experts alike were surprised to see the rates decrease, reaching a two-year low of 3.82% by the middle of the year. These rates were predicted to remain stagnant, and they have.
Mortgage interest rates fluctuate constantly, changing day-to-day, and week-to-week. Locking in a mortgage rate is an important part of buying home, as the rates could jump dramatically in a matter of days. Florida’s interest rates continue to remain low, fluctuating, but still keeping mortgages at an affordable rate, despite the increasing home prices. These low rates are just another factor that makes the Florida housing market so appealing.
Whether you are moving to Florida for a new job, to retire, or you simply wish to invest in a rental property given the increased demand for housing, the quality of life in the Sunshine State is yet another factor influencing the Florida housing market.
Quality of life is ranked nationwide through several elements, from healthcare to outdoor activities and average income. According to US News, Florida ranks #13 in the nation for quality of life, not least of which has to do with the lack of personal income tax, access to education, economic growth, and fiscal stability. As homeowners and renters look to improve their quality of life, seek new jobs, or simply chase the sun, investing in a Florida rental property, single-family home, or even a vacation home is a popular choice.
While Florida’s housing market continues to excite investors and sellers alike, state averages only reveal a portion of the Florida real estate picture. In order to make the most out of your investment, it pays to partner with a real estate agent who understands the market both statewide and in the city where you wish to purchase a home.
LemonBrew’s partner agents have both local knowledge and experience in the Florida housing market, giving you the insight you need to find the perfect home or investment property. Not only that, but your LemonBrew home purchase brings with it a closing cost rebate, which means buying a home in Florida has never been easier, smoother, or more affordable.