South Florida has been a hot spot for real estate throughout 2019, and the future is looking bright for homeowners in 2020. Here’s a look at some of the latest real estate marketing trends in the area.
5 Housing Market Trends & Predications for South Florida
#1. Not Enough Listings to Support Buyer Demand
In South Florida, the real estate market continues to see signs of growth in sales, prices and real estate transactions. As with most cities in the US, cities throughout South Florida do not have enough active real estate listings to support buyer demand. This means it’s a seller’s market. In proof, house prices increased by five percent in July.
New listings for single-family homes decreased by 2.2 percent this year, while condo listings decreased by more than double that – at 4.5 percent. Into 2020, experts predict new home listings will continue to drop. The fewer homes available on the market, the more prices go up on available listings – it’s just simple supply and demand.
Properties that are priced below $200,000 sell the fastest, about thirty days faster, but luxury homes are still getting swooped off the market.
Economists are hopeful that Florida’s strong economy paired with low interest rates will prevent a national housing market bubble any time soon.
#2. Home Sales Still on the Rise
Meanwhile, sales of single-family homes in Florida increased year over year by 4.6 percent, equaling a total sales volume of 85,017. Condo sales increased as well, with 34,128 condos and townhomes sold.
#3. Home Values are on the Rise
Zillow reported that Florida home values increased by 4.3 percent over the last year. The home buying platform predicts that housing prices will continue to increase throughout 2020, at a rate of around 2 percent.
#4. Mortgage Rates
Experts predicted mortgage rates would increase more this year than they did, hitting 3.82 percent – a rate we haven’t witnessed in about 2 years. Rates are not expected to increase in 2020. Pair this with the fact that Florida is a no income tax state and you’ve got a very desirable place to buy a home.
#5. Population Increases
Florida is now the third fastest growing state in the US. The population continues to grow, expanding by 1.63 percent this year and 11 percent since 2010. According to Florida housing market predications, in 2020 we will see the largest population booms in Sweetwater, Parkland, Palm Springs, and Groveland.
As more people move to our great state, it will put more demand on the housing market and increase the cost of real estate.
Did you know that Florida is responsible for creating 10 percent of America’s new jobs? It’s true. Housing and tourism are the driving forces behind Florida’s lucrative economy. By 2020, the Florida economy is expected to reach over $1 trillion. High employment rates, a growing GDP, and population increases should all contribute to a strong housing market throughout 2020.
Additional Predictions for 2020 include:
- The median property price will rise to $432,690, with a price per square foot of $250.
- The average home will spend 125 days on the market before it sells.
- Monthly traditional rental income will be around $1,816, while the monthly Airbnb rental income will be around $2,763, with a 55% Airbnb occupancy rate.
Building a Home in South Florida
Instead of fighting other buyers for your perfect home in South Florida, why not build it from your imagination? Paterson Development is here to help every step of the way, from finding the ideal property to drawing up plans and constructing your home from the ground up. Contact us today to learn more