Florida housing market: Everything you need to know

With its warm weather and relatively low cost of living, Florida has become a hotspot for people seeking a change of scenery. The state has led the nation in net migration for over five years, and the pandemic has only accelerated this trend. However, while Florida offers an enticing lifestyle, the real estate market has seen some significant shifts. In this blog post, we’ll delve into the current state of the Florida housing market, trends, and tips for both buyers and sellers, and explore predictions for the future.

Florida Housing Market Overview

Florida is a vast state, and real estate activity varies greatly depending on the location. For example, Miami, a magnet for out-of-state transplants, experiences different market dynamics than Tallahassee. It’s crucial to understand that real estate is hyper-local.

Climate change is also a significant factor impacting the Florida housing market. The damage caused by events like Hurricane Ian along the Gulf Coast serves as a stark reminder. McKinsey’s report warns that rising sea levels could potentially lead to a 35 percent loss in value for coastal homes by 2050.

Florida Housing Market Trends and Stats

For those looking to buy or sell in Florida, here are some key statistics to consider:

1. Median Sale Price: In August 2023, the median sale price in Florida was $415,000, showing a 2 percent increase from the previous year.
2. Sale-to-List Price: Buyers paid 97.5 percent of a home’s list price in August 2023, down from 98.5 percent the previous year.
3. Days on Market: The median time to contract for a single-family home increased to 27 days in August, up from 16 days the previous year.
4. All-Cash Deals: In August, over 6,700 of the 22,917 single-family homes sold were purchased in cash.
5. Inventory: There was a 3-month supply of housing inventory in August, up from 2.4 percent the previous year, but still insufficient to meet demand.
6. Closing Costs: On average, closing costs in Florida total 2.3 percent of the home’s purchase price.

Buyers and Sellers in the Florida Housing Market

Selling a Home in Florida

While Florida remains a seller’s market due to limited inventory, there are signs that sellers should heed. Homes are taking longer to sell, and overall sales have seen a 7.9 percent drop. Pricing strategies should be competitive rather than overambitious, given the current market conditions.

Buying a Home in Florida

While prices have stabilized, they remain relatively high, with a median price of $415,000. With mortgage rates above 7 percent, some buyers have stepped back, potentially providing an opportunity to avoid intense competition.

Conclusion: Predicting the Future

While concerns about a nationwide housing market crash persist, experts do not foresee a repeat of the 2007-2008 crisis in Florida. Instead, the market is expected to experience a gradual cooling off. Different regions within Florida may have distinct forecasts, with major cities like Miami and Orlando likely to fare better than rural areas.

In this dynamic market, having an experienced real estate agent by your side is crucial. Whether buying or selling, finding the right agent who understands the local nuances can make a significant difference in your real estate journey. So, whether you’re eyeing the bustling streets of Miami or the serene landscapes of Tallahassee, be sure to interview several candidates to find the perfect fit for your needs. Happy house hunting!