Latest statistics for the Florida property market during 2014 show sustainable levels of sales and steady rises in prices. Analysts claim the figures prove the sector has reached stability and point to further steady growth in 2014.
Single family homes had a particularly buoyant year in 2014 throughout Florida. Total sales grew 8.1 per cent in the year with average prices reaching US$178,000, an increase of 5.3 per cent on 2013. Sales of condos and townhouses were not as busy as single family homes – they registered a fall of 1.2 per cent – but prices for this type of property in Florida rose by a high 9.8 per cent to US$140,000.
Sector analysts greeted these figures. “Throughout 2014, we’ve seen positive signs that Florida’s housing sector is on a steady, sustainable path,” said Andrew Barbar, President of Florida Realtors. He highlighted that Florida’s economy is growing, jobs are being created and mortgage interest rates are still low. He believes this triple combination will continue to drive the housing market this year.
For the Chief Economist at Florida Realtors, John Tuccillo, the statistics also prove the market is moving in the right direction. “We close the books on 2014 on a very positive note,” he said, “and virtually all the metrics for the Florida market are moving at levels that can be sustained.”
Meanwhile, according to nationwide statistics, home ownership in the US is at its lowest level for 20 years. A survey carried out by Commerce Department found that the level of home ownership in Q3 2014 fell to 63.9 per cent, its lowest since Q3 1994.
On the other hand, the number of new household formed grew spectacularly during 2014. At the end of the year, 1.7 million new households had been formed in the US, up from 356,000 12 months earlier. This nearly five-fold increase can be explained by the sharp rise in new occupiers of rental properties, attracted to the benefits offered by renting a home rather than buying one.
Sources: Florida Realtors