During the first three months of the year the Florida property market continued in line with the trends set in 2017. Median prices rose yet again in both the single-family home and condo and townhouse sectors while inventory levels remained tight. A look at the data alongside demographic trends reveals a healthy market driven by strong demand.
Even higher prices
Prices for property in Florida have been rising for months and the first quarter this year proved to be no different. The median price for single-family homes in the state rose by 9.7% in between January and March to reach US$248,000.
Condo and townhouse properties in the Sunshine State also went up in price. Their median value increased by 5.9% to US$180,000, according to figures released in mid-May by Florida Realtors.
Sales up and down
Q1 this year showed a mixed bag for sales within the Florida property market. Those for single-family homes saw a slight drop with 0.9% fewer sales than for the same period in 2017. Purchases of condos and townhouses, however, rose by 2.8% over the three months.
Analysts attributed the slight fall in single-family home sales to the lack of supply. “It’s the lack of both existing and new inventory that is really limited the segment’s potential and keeping sales growth down,” said Brad O’Connor, Chief Economist with Florida Realtors. “In many cities we’re starting to see evidence that buyers who would have preferred single-family homes are giving up and opting to buy condos or townhouses instead.
Although listings grew between January and March, Florida continues to suffer from a shortage of property. The 1.1% rise in the number of single-family homes listed and the 2.9% increase in condo and townhouse properties did very little to influence inventory levels.
At the end of March, the Florida property market had just 3.8 months’ supply of single family homes, way below the 6 months considered by experts to indicate a balanced market. Supply was slightly better for condos and townhouses with 5.9 months.
Strong demand in Florida property market
Economic and demographic factors remain in place for another quarter of similar trends, according to analysts looking at the property market. Employment prospects remain strong as Florida continues to create jobs at a rate well above the national level.
The Sunshine State remains one of the best states to do business in. The latest Chief Executive magazine survey reiterates Florida's favourable tax position and places it as the second best in the country for business.
And Florida continues to attract new residents in their droves. The younger population relocates in search of job opportunities and the older sector for retirement. The Kiplinger’s 2018 “Where to Retire in the US” survey ranked Florida as the eighth best for retirement out of the 50 states.
(Source: Florida Realtors, Kiplinger)