Florida property market moves up yet another notch and registered its 66th consecutive month of price hikes in May. On the back of strong employment prospects, Florida continues to attract buyers in droves. Particular highlights in terms of sales and price increases within the Sunshine State include the property market in Orlando, Tampa Bay and Charlotte County.
The Florida property market remains very much the domain of the seller – May saw inventory levels plummet and median prices rise. Real estate agents operating in the Sunshine State report big interest and often intense negotiations as buyers vie to purchase homes in the most sought-after areas.
Single family homes up
Sales of single family homes in Florida rose by 7.6% in the year to May. Median prices for this sort of property reached US$239,000, up 7.7% in 12 months. This strong activity is gradually eroding supply and inventory levels now stand at just 4 months in the state.
Condo and townhouse properties rising too
This type of property in Florida also saw brisk sales in May when the number of purchases went up 8% on the year. Price rises saw a similar hike, going up 8.1% to reach US$178,000. Inventory levels for condo and townhouse properties have fared slightly better than those for single family homes and the current supply stands at 6 months.
Orlando property like hot cakes
One of the stand-out areas within the Florida property market in May was undoubtedly Orlando. In the capital of Florida tourism (and the most visited holiday destination in the US), buyers just can’t get their hands on properties quickly enough. In May, 30% of properties in Orlando sold within one week of entering the market.
Unsurprisingly, supply levels have dropped considerably and the current 2.3 months’ inventory ranks as the lowest since September 2005. It follows that price rises would set records too – the median price of US$218,000 in May marked a 14% increase on the same month in 2016.
Charlotte County star performer
Another stand-out performer within the Florida property market is Charlotte County in the southwest of the state. In this county, close to the popular employment centres of Cape Coral and in a highly sought-after residential area, sales of single family homes went up by 5.8% in the year to May. Prices increased in tandem and reached US$218,000, a 14% hike over 12 months.
These figures fall in line with general predictions for property in Southwest Florida this year. Strong sales driven by high demand have inevitably resulted in a shortage of property. Experts believe that the area has a deficit of around 20% in single family homes.
Tampa still a hot spot
The Tampa property market has ranked among the best and healthiest in the US for a while now. And the latest figures for May confirm this trend.
In three of the four counties that make up the area around Tampa Bay, property prices shot up in the year to May. Those in Pasco county registered the highest hike with a rise of 16%. Pinellas with an increase of 14.4% and Hernando with 12.6% were not far behind.
Similar trends in the US
May figures from the National Association of Realtors (NAR) for the whole of the US mirror the trends seen in the Florida property market, although at a slightly slower pace. Median prices for single family homes went up by 6% and those for condo and townhouse properties by 4.8%.
Inventory levels stand at 4.2 months, down from 4.7 in May 2016 and 55% of properties in US sold in May were on the market for less than a month. This is an NAR record as is the average time spent on the market (27 days). “Homes are coming off the market at an extremely fast pace,” says Lawrence Yun, NAR Chief Economist, commenting on the statistics.
“The Florida property market presents an ideal scenario for the investor,” says Dies Poppeliers, Managing Director of BRIC Group. “On the one hand, we have strong and sustained demand and on the other, a marked shortage of suitable property. This offers exceptional opportunities for investment in new builds and in buy-to-let.”
BRIC Group, an investment company specialising in global real estate opportunities, offers US real estate investments including turnkey properties in Florida and Houston, and land plots in Florida. BRIC Group is also developing The Coral resort, in Northeast Brazil, a luxury beachfront resort with land and villa investment opportunities. BRIC Group has been creating wealth for its clients since 1996 and has offices in Brazil, Dubai (consulting office), Hungary, Spain and the US.
(Sources: Florida Realtors, NAR)