MARKET UPDATE FOR FLORIDA
It continues to be a seller’s market!!! The old Supply and Demand is evident! There is not enough inventory to meet the demand of buyers that want to own a home in the Sunshine State. Note, Florida added 300,000 residents from 2013 to 2014 vs. New York who only added 51,000 during the same time period.
The median price has increased 9% on average of single family homes ($200,000) and 11% for condos ($159,000). The high price point ($400,000 plus) closed sales have increased by 25%. Days on market are at the lowest since before the recession at 50 days for Single Family homes and 53 days for Condos. Currently, there is only a 4.7 month supply of inventory for Single Family homes and 5.8 month supply of condos. The demand for Single Family homes and Condos in the $200,000 range continues to drive prices upward till new construction becomes available to tame it.
Economists remain cautious when forecasting the appreciation Floridians will enjoy. The primary reason is that Florida remains in the top ten states in new foreclosure filings and completed foreclosures in the country. Due to Florida being a judicial state, the state has had pains in getting the foreclosures moved through the system in a timely manner. The entry of foreclosures and short sales into the market, while assisting with demand, are typically in a more distressed state and are selling at lower prices. Currently, it is a guessing game as to how prices will survive the ebb and flow of the market.
A Realtor continues to be your best resource to guide you through the listing or purchasing process in this volatile market. As the statistics stated above are statewide, certain pockets of the state are drastically different due to various geographical offerings and job development. A Realtor whom specializes within the default industry, and has experience under their belt, can be of great assistance whether it is purchasing, listing a short sale or selling a Corporate Owned Asset. Many investors have entered into the Florida market with either a buy‐ hold strategy or short‐ term renovation strategy. The demand for Property Management Companies that can service these investors is on the rise. Realtors with default industry experience are offsetting this demand with their expertise in efficiently managing these properties.
In summary, the FL market currently continues to be very active despite the snow birds being back North. The stabilization of prices is yet to be seen but the demand is up, and until the supply grows, the market will fluctuate greatly.