Despite the initial concern over the possibility of the COVID-19 recession impacting Florida's housing markets, most of Florida is seeing continued growth in population, home values, and sales prices. Homes are selling faster and for more money than they did before the pandemic.
Few people are predicting that 2020 will be a record-breaking year for home sale prices. But relatively speaking, 2020 might be the best time to put your house on the market. -- New buyers are still entering the market. -- Interest rates are expected to remain low.
When is the best month to sell a house? The best month to sell a house is June, though May is a close second, according to a May 2020 report from real estate research firm ATTOM Data Solutions.
In fact, the Florida real estate market is one of the most profitable investment markets to date. There are many factors to suggest that purchasing Florida investment properties is a rewarding experience. For example, the state offers people with a lucrative return on investment on their properties.
In Florida, there is no state income tax as there is in other US states. But if you do make money from renting or when you sell your property there will be Federal taxes (to the US government) to pay on the profit. In many cases, the tax to pay may be zero, but the costs of not filing or defaulting may be much higher.
After seeing housing inventory plummet over 50% between April 2020 to April 2021, it's moving up again. A housing market crash is very unlikely: In the short term, a wave of demographics and years of under-building will ensure, industry insiders tell Fortune, that demand outmatches supply.
The current housing boom will flatten in 2022—or possibly early 2023—when mortgage interest rates rise. There is no bubble to burst, though prices may retreat from panic-buying highs.
As any realtor will tell you, buying a house has much to do with timing. So is now a good time to buy a house? But mortgage rates continue to be favorable and there is a housing shortage, assuring a minimal chance of a price decline," Lawrence Yun, National Association of Realtors' (NAR) chief economist, told Newsweek.
Statewide, the study notes properties are about 22% overpriced. The study looked at housing trends over the past decades and analyzed where house prices should be and what you should be paying for a home. According to Johnson, prices will eventually stabilize.
Tepid wage growth, higher land and construction costs, increased demand for rentals and rising home values all have contributed to the affordable housing situation in South Florida, experts say. “The lack of affordable housing is a growing concern.â€
With an estimated 845 people moving to the state per day until 2025, the real estate boom is alive and kicking in Florida, particularly in the Bay area and Central Florida. Florida real estate is usually a hot commodity but the market is on fire right now, said Realtor Chris McLaughlin.
Brian Alford, CoStar's director of market analytics for Florida, said these increases are being driven by several factors, including the extreme conditions for home-buyers. “The big factor is the tight housing market with record price growth and record low inventory, which is locking people in place,†he said.
Petersburg. Much of the Tampa Bay area has experienced an uptick in home buying over the last year, but St.Petersburg stands out the most. Pending sales increased by 32.1% from May 2020 to May 2021, while new listings increased by 19% over the same period.
Florida isn't the only place that has experienced a hot real estate market. In fact, this trend has been seen all across the country due to meager interest rates that improve buyers' purchasing power. The Federal Reserve did this because of the poor economic conditions caused by the COVID-19 pandemic.
Experts are predicting annual home value growth to slow to 4.5% in 2022 and continue a downward trend through 2025. Experts are also predicting more housing starts (aka new construction) in 2022.
In general, real estate is considered a safe investment. The housing market in Florida has been experiencing considerable growth over the past few years, and this is expected to continue. Currently, the median housing value in Florida is expected to increase by 2.0%, making Florida a great place to invest.
In the first five months of 2021, 22.4% of buyers of existing homes made an all-cash purchase
| Year | Share of all-cash buyers in existing-home sales |
|---|
| 2021 | 22.40% |
| 2020 | 18.20% |
| 2019 | 19.70% |
| 2018 | 21.40% |
