Florida is home to more than 21 million people. Daily, more people move to the “sunshine state” for the beautiful beaches, sunny weather, and yes, even the booming real estate market.
When people think of Florida real estate, they typically think of either large beachfront properties or quaint suburban family homes. The Florida real estate market is incredibly diverse, so both preconceptions can be proved accurate.
But what does the real estate market in Florida really look like? Continue reading to find out seven surprising facts that will give you better insight into the current economic situation.
1. Median Home Value
Firstly, across the state, the median home value in Florida is $238,600. This number is a balance of expensive areas and impoverished areas scattered across the state. Some beach resort areas (like Miami Beach) have average median home values in the millions.
2. Rising Home Values Over the Past Year
The average median home value for Florida has been rising over the past year. It grew an incredible 4.1 percent in the last twelve months alone.
3. Continued Growth
Thirdly, average median home values are forecast to continue growing. Over the next twelve months, they’ll probably rise another 3.6 percent. This is excellent news for anyone looking to invest in Florida real estate.
4. Average Days on the Market
Florida homes stay on the market an average amount of time. The average days a home stays listed before it’s purchased is 83. Nationally, homes remain on the market between 65 and 93 days.
5. Negative Equity
Only seven percent of homes in Florida have negative equity. The national average is 8.2 percent.
Negative equity refers to a loan worth more than the property it’s being held on. If you have negative equity on a property, it can be chalked up to long loan terms, inflated interest, or receiving a bad deal on your real estate.
6. Home Ownership vs. Renting
As newer generations impact the housing market, they’re showing a distinct preference towards renting versus purchasing. Only 65.5 percent of Florida residents are homeowners. This is the lowest percentage since 1990.
7. Cost of Living Is Low
One thing indirectly impacting the booming real estate industry in Florida is the low cost of living. Besides being one of the few states not to have a personal income tax, the overall cost of living in Florida is two percent below the national average.
Do You Have More Questions About the Real Estate Market in Florida?
The real estate market in Florida is booming. The market has shown continual growth and is forecast to continue on this track. This makes it a safe bet for those looking to invest in real estate.
Lastly, do you have more questions about the real estate market in Florida? Or, do you need help finding a luxury home in the Tampa area?
Contact us today and one of our associates will answer any questions you still have. They can also help you find a luxury home that fits your lifestyle if desired.