The Housing Picture for 2018
National Association of Realtors
NAR reported existing home sales rose 3% in February. Nationally, 5.54 million units sold ending 2 months of declining sales. Housing inventory rose last month but is still down 8.1% from 12 months ago.
Housing inventory remains the most influential and persistent factor affecting prices although media and politicians blame speculation, building costs, interest rates, cost of living, and mortgage rules. When the economy is good people want homes. Construction is strong but can’t keep up. Simple rule of supply vs demand is driving home prices.
Ready to Choose a Realtor and Buy?
A perfect storm of demand, supply and economic factors are making Florida an excellent a great place to buy real estate. See the price projections for the major cities below.
The housing market in Tampa, Orlando, Panama City, Sarasota, Naples, Fort Lauderdale, and even Boca Raton are compelling real estate investment value propositions for snowbirds and other buyers in North America. As you’ll see, sunny and warm Florida home prices are quite reasonable.
Interest in buying Florida properties from buyers seems to grow and wane through the weeks and months. Although January and February are a lull in demand, the Florida economy is too strong to see that continue. The recent tax changes may discourage speculative investment for a while but buyers are now back.
The Florida housing market in 2017 was characterized by a lack of new construction, big price reductions on new condos, a disappearance of South American property buyers, softened house and condo prices, and of course, low taxation rates. If the glut of condo building in Miami is now complete, then we may see upward pressure on condo prices.
Choosing Your Florida Home Style
The variety of homes in Florida is astonishing. From modern 3 bedroom bungalows to condos in towering buildings to quaint beach houses to spacious multi-million dollar mansions, you can have your dream life, walk the beaches, shop for hours, and never have to shovel snow. For a lot of buyers, that’s a compelling value proposition.
With more baby boomers hoping to retire somewhere nice, and who have been holding onto their old home because they have nowhere to go, will find Florida a compelling value proposition in real estate investment.