Status of the Flordia Real Estate Market in 2017
For the most part, 2017 was another strong year for the real estate market in Florida, although the impact of Hurricane Irma caused major disruption to the market in the fall, resulting in fewer home sales, with closing sales 5.5% lower in the third quarter of 2017 than they were in 2016. Still, prices were up year to year, and the economy remained strong, with a low unemployment rate of only 3.8%, far lower than the national average. Inventory is better than many other markets, with Florida Realtors revealing that the supply for single-family homes was 3.8 months while condos were at 5.5 months. Homes going on the market typically sold in thirty-seven days if they were single-family dwellings, while condos typically took forty-nine days to sell.
Demographics in Florida
A major demographic shift as relating to home ownership is underway in Florida, particularly in the central area. Baby boomers are transitioning out of their homes, buying up condominiums or joining retirement communities in the south, while urban, collaborative projects have become desirable to millennials as they start families and relocate for work. In the meantime, Realtor.com listed Orlando as the third biggest “millennial magnet” in the country thanks to the high rate of employment and the major presence of big employers like Disney, Lockheed Martin and Verizon. Meanwhile, Miami remains the second biggest “millennial magnet” market in the country, with it always ranking among the most desired places in the country to live thanks to the thriving culture and weather.
Average prices of housing in the Florida Real Estate Market
The Median price for a home in 2017 hit $240,000, up 6.7% from the previous year according to the Florida Realtors research department. The average rent varied greatly by the area, with $1,223 for a studio apartment being the average for the whole market.
Reasons for growth and outlook for 2018
The real estate market in Florida is going to stay hot in 2018, with foreign investment expected to remain dominant, as is multi-family building in the urban core. According to the National Association of Realtors, investors from Latin America make up nearly half of the buyers in South Florida. Another factor expected to benefit foreign investment – Bitcoin. This cryptocurrency has dominated the news cycle, and sure enough, Bitcoin Fever shows signs of growth in the year ahead. Significantly for property investment in Florida, it allows foreign buyers a way to avoid tax pitfalls, economic sanctions in the U.S and current control at home.
However, there’s still a long way to go before Bitcoin being used to buy real estate becomes the norm, with a report by real estate firm Redfin explaining that while some homes in Miami may be sold this way, on the whole, major sales aren’t done this way – yet – with it still too volatile. Property values are expected to spike in many areas, with a report by Realtor.com singling out Deltona-Daytona Beach and Lakeland Winterhaven as the areas most expected to thrive in the year ahead.