Thinking of moving to the Sunshine State? You're not alone. Florida, home to Disney World, Daytona 500, and even a 200-foot alligator named Swampy, is a popular destination for many. But before you pack your bags, it's crucial to understand the Florida housing market. This blog post aims to provide you with the latest insights and trends to help you make an informed decision.
The Current State of the Florida Housing Market
Key Statistics
Median Sale Price (Q4 2022): $400,000
Inventory (Active Listings): 65,786
Closed Sales: 57,004
Median Time to Sale: 76 days
Average Mortgage Rate (15-Year Fixed): 5.68%
Compared to Q4 2021, the median sale price has increased by 9.6%, and the inventory has surged by 116.8%. However, the number of closed sales has decreased by 33.1%.
Major Cities
Orlando: Median Sale Price - $422,745 (Year over Year % Change: +11.2%)
Tampa: Median Sale Price - $399,000 (Year over Year % Change: +12.4%)
Jacksonville: Median Sale Price - $386,000 (Year over Year % Change: 11.2%)
National Comparison
Florida's housing market is growing, but not as rapidly as some other states. For instance, Nebraska, Wyoming, and Kansas have seen year-over-year home price increases of 32%, 31%, and 29%, respectively. In contrast, Florida's listing price grew by 9.1%.
Predictions for 2023
Market Cooling Down
According to Florida Realtors® chief economist Brad O'Connor, the market is expected to return to a more "typical pace" similar to the years 2018–2019. The frenzy that was observed during and after the COVID-19 shutdowns is likely to subside.
Price Stability
If you're waiting for a housing market crash, you might be waiting indefinitely. Prices are expected to relax but not plummet. For a significant price drop, there needs to be a flood of supply, which is unlikely to happen soon.
Continued Demand
Despite inflation concerns, the demand for homeownership remains strong, especially among young adults looking to start a family.
Should You Buy or Sell?
Your decision to buy or sell should not solely depend on market trends but rather on your financial preparedness. If you're buying, ensure you're debt-free, have a full emergency fund, and can afford at least a 5–10% down payment. If you're selling, make sure you can afford the move and have a new place lined up.
Conclusion
The Florida housing market is evolving, and while it may not be as red-hot as before, it remains a strong market with continued demand for homes. Whether you're looking to buy or sell, it's essential to consult with a real estate agent to navigate this complex landscape.
Next Steps
Calculate your household's monthly take-home pay.
Multiply it by 25% to figure out your monthly payment budget.
Consult a trusted real estate agent to determine if buying or selling is the right option for you in this market.
Happy house hunting in the Sunshine State!
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