Florida property entered its 51st consecutive month of price rises in February with increases in the price tags for both single family homes and townhouse-condo properties across the state. Sales prices are also gradually reaching a par with asking prices, proving that the market remains very much in the hands of sellers. This BRIC Group news piece provides the details.
Last February saw yet another month of median prices rises and Florida property has now been on an upward trend for nearly four and a half years. Single family homes averaged US$200,000, an 11.1 per cent rise on February last year, and median prices for townhouse-condo properties in Florida reached US$150,000, up 5.6 per cent year-on-year.
Actual prices near asking prices
In addition, these median prices are now approaching asking prices. The final cost of single family homes in Florida represented 95.3 per cent of the asking price while the price paid for townhouse-condos was 94.4 per cent of the original listed price. Both these percentages have risen over the last 12 months and show that the Florida property market continues to move in favour of sellers.
Increases in the Florida property market mirror those taking place in the rest of the US. The National Association of Realtors reported that in January the median price for single family home properties in the US went up by 8.3 per cent year-on-year to reach US$215,000. The state with the most expensive single family homes in January was California where this type of property cost US$468,330.
However, February’s figures did bring some positive news for buyers. New listings for both single family homes and townhouse-condo properties in the Sunshine State increased. Those for single family homes rose by 12.1 per cent and listings for condos in Florida by an even higher 15 per cent.
The president of Florida Realtors, Matey Veissi described the rise in listings as “good news for would-be buyers” and he reported that there’s great interest from buyers “across the state”. However, he cautioned that with inventory levels still relatively low, “the search can take time”.
Inventory levels still low
While the listings of new properties may have risen, the inventory for Florida property remains low, particularly when it comes to single family homes. In this sector, the supply dropped by 5 per cent in the 12 months to February this year, bringing inventory levels down to 4.5 months, considerably below the 6-month threshold considered by analysts to indicate a balanced market.
The situation is slightly better in the townhouse-condo sector. Here, inventory levels went up by 6 per cent between February 2015 and February this year and the months’ supply rose by 3.3 per cent to reach 6.3 months.
“The Florida property market continues to forge ahead,” says Dies Poppeliers, Managing Director at BRIC Group, “and we fully expect this trend to continue throughout the rest of this year. The state’s economy is booming and creating lots of new jobs, which in turn creates high demand for housing.”
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.
Source: Florida Realtors