Outpacing the nation in economic growth and job creation, the Sunshine State also notched up higher figures for property in 2018. The latest statistics point to more sales and higher prices for Florida real estate last year.
Single-family homes in Q4 2018
Sales of single-family homes in Florida remained largely flat in Q4 when they rose by 0.1%. This brings the yearly increase to 2.2%. Prices for this type of Florida real estate went up by 6.3% to reach a median of US$255,000. In the year as a whole, single-family home prices increased by 7.2%, well ahead of the national 4% average.
Inventory levels at the end of the year were slightly higher. The supply of single-family homes stood at 4 months, up 11.1% on the previous quarter. The annual rise was 13.3%, described as “not a significantly huge increase” by Florida Realtors Chief Economist Dr. Brad O’Connor. He added that more inventory could help spark sales, bringing back potential buyers who have been waiting on the sidelines.
Sales were brisker for this type of Florida real estate. They rose by 1.9% in Q4 and by 4.9% in the year as a whole. Prices for condos and townhouse properties also went up and at the end of December stood at a median of US$247,067. This represents an increase of 5.1% for the quarter and 7.2% for the year.
Like single-family homes, condos also saw a rise in inventory levels. At the end of the year, supply stood at 5.7 months, up very slightly from 5.6 months in the previous quarter.
Florida real estate ahead
According to the National Association of Realtors (NAR), US property sales in Q4 last year dropped by 1.8% on average. In Florida, it was a different story. Florida Realtor figures point to a rise of almost 2% in sales of single-family homes and condo properties. Prices also rose at a higher rate in Florida than in the US generally. Houses went up by around 4% across the nation generally while those in Florida rose by 6.2%.
This trend is expected to continue in 2019. NAR is predicting flat growth for US properties, but Florida real estate will again outperform the nation.
“In our Florida forecast model, we’re outpacing the nation in sales and employment growth,” said O’Connor. “Our outlook is probably about 1% growth in sales and maybe 3 to 4% price growth.”
Positive outlook for 2019
Industry analysts believe 2019 will be another solid year for Florida real estate. Forecasts for the state economy run ahead of those for the US as a whole and job creation is expected to remain strong.
“Florida’s economy is growing, the jobs outlook remains strong and more people are moving to the Sunshine State,” said Eric Sain, President of Florida Realtors. “All these factors are positive signs for the state’s housing market in 2019.”
(Source: Florida Realtors)