Florida Family Home Prices Rise 10% in a Year

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Florida Family Home Prices Rise 10% in a Year

June 29, 2018

Property market in sunny US state of Florida reaches highest point since the recession! Great news for those savvy property investors looking to do business in the popular east coast paradise.

The median sales price for single family existing homes across Florida rose by an impressive 9.7% in just one year. Data pulled from local realtor boards and associations revealed that the median sales price for this property type was $248,000 in the first quarter of 2018. Meanwhile, the state-wide median price for condo townhouse properties stood at $180,000, marking a rise of 7.8% in a year.

Traditional sales of condo townhouse units witnessed a 5.6% increase, while state-wide closed sales rose 2.8% to 27,088 between quarter one 2017 and the same quarter in 2018. Traditional sales for single family homes rose 3.8% year-on-year.

A local property expert said: “During the first three months of 2018, median sales prices for both existing single family homes and for condo townhouse properties rose in Florida, continuing a trend that we've been seeing for quite a while. Possible driving forces behind the increase in median prices include Florida’s “strong employment growth” and the “long-awaited emergence of the millennial buyer. The rise in demand has also been attributed to the “sizeable contingent of investors […] who are looking to capitalise on high rents”.

Referring to the more affordable properties on the state-wide market, local experts agreed that an undersupply of existing and new inventory is limiting the segment’s potential and keeping further sales growth at bay. However, they noted that buyers seeking mid to upper-tier family homes face less competition due to a “relative abundance of both new construction and resale inventory available”.

Florida house prices highest in US since recession

This comes with the news that real estate in Florida and California has made the biggest gains in the US since the Great Recession. Nine of the top 20 biggest gainers were in Florida, with house prices in Cape Coral up 173%. Miami home prices rose by 143%, followed by Orlando (137%), Punta Gorda (125%) and Palm Bay (123%).

Six of the biggest gainers were in California, with San Jose, Silicon Valley’s largest city, leading the way at 191%. All six were located in the north of California, around the San Francisco area. Investment experts note that limited supply is driving prices up in California, while Florida prices continue to rise due to high domestic and international migration.

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With a rising population, strong jobs outlook and a growing economy, Florida is ranked by the Chief Executive magazine as the second best US state to do business. The Sunshine State is also regularly named as one of the best places to live, appealing to US citizens and international expats alike.

With a balmy climate, world-class leisure facilities and no language barrier, Florida is particularly popular with British holidaymakers, property investors and senior citizens looking to retire abroad. Property that would be considered luxurious by British standards is highly affordable compared to UK prices.

If you’re considering purchasing property in Florida or in our Europe destinations (Spain, Portugal, Cyprus, Bulgaria and Cape Verde), we’d love to have a chat, put you on the right track and guide you through the buying process from start to finish!

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