SUNRISE, FL (June 26, 2018) – Data from industry sources continues to paint a positive picture of real estate markets statewide in Florida with markets like Miami/Dade County, Orlando and Sarasota leading the way.
Median home sales prices across the state rose 9.2% year-over-year in Q1 2018 according to the Florida Realtors Association while closed transactions for the same period remained virtually unchanged. This suggests an inventory slowdown that should continue to put upward pressure on home values in 2018 and beyond.
Additional evidence of a sunny market outlook is seen on the year-over-year percent of asking price gains and time to contract and time to sale reductions.
This industry wide data is consistent with what Berkshire Hathaway HomeServices Florida Realty’s network of over 1900 real estate agents are experiencing. Our network of agents in over 40 offices statewide is continuing to find ways to help clients understand and make the most of a Florida real estate market that continues to heat up.
The year-over-year data is a continuation of trends that have gone on for five or even six years in some markets which will raise questions about market bubbles and busts. The good news is that, as of recently, there is little evidence of aggressive, one-time spikes and other indicators of irrational, overly speculative investment. As described in the South Florida Business Journal, last year’s Federal tax overhaul does increase home ownership costs, especially in the luxury market which will likely increase price pressure for properties in the mid-market range. This (and other factors) should reduce the likelihood of overly exuberant behavior that can drive instability.
Generally, a slowing of property development and consistent, moderate, economic growth in the state seem to be driving real estate prices up steadily. Compared to other large US regions with similar real estate appeal, Florida properties remain a good value.
Seasonal home buyers and property owners are able to find exceptional value for properties in Florida as North American aging demographics and attractive tax laws combined with strong local economies ensure stable-to-increasing property values across Florida with a concentration and snow-bird destinations like Miami, Naples, Fort Lauderdale, Sarasota, and Boca Raton.
Look for more in-depth analysis for individual markets like Miami and Orlando in future posts.