Florida is filled with beaches, retirees from around the world and it is one of the hottest vacation destinations in the country. The Florida real estate market is affected by all of that along with unemployment, taxes and the interest rates on mortgages. So with the current conditions what does that mean for real estate in Florida for the rest of the year and in 2020? Let’s have a look at the Florida real estate market and where you should invest.
What’s Happening in 2019
For the past decade every major metro area in the state has seen a jump in the population and that means greater demand for housing. Greater demand has been driving housing prices up and it will continue to do so. Housing prices in Florida have risen almost 5% over the previous year. While the state has seen the population grow the economy is also doing quite well. The unemployment rate sits below the national average and taxes are also low, Florida is one of the few states with no sales tax making real estate purchases even better. .
If you had asked any expert in 2018 whether mortgage rates would climb in 2019 it would have been a resounding yes, however that didn’t happen. Mortgage rates at an all-time low and they are predicted to stay that way well into 2020. You still have plenty of time to get a great deal in 2019 if you shop around.
The most important aspect that any investor looks at is of course the price. While housing prices in Florida have been rising for some time it is expected that that growth will slow in the latter half of 2019 and into 2020. Zillow estimates that housing prices will increase by a little less than 2%. However the higher end markets like Miami and Fort Lauderdale will see a decline in housing prices. The highlight of Florida’s market will be in Orlando, Jacksonville and Tallahassee they expect to lead the market growth with prices rising as much as 4%
Nearly half of home sales will go to first time home buyers as more and more millennials are finally entering the market. Despite the slowdown in housing sales the competition for entry and mid-level priced homes is still going to be stiff. Investors will have to be quick if they want to strike a bargain. Sellers have the advantage for the next year or so.
If you are looking to sell your home, make sure you learn more about the cost of selling your house in Florida as there may be all sorts of closing costs, taxes, and unaccounted for expenses that are associated with selling the home.