What you should know about the Florida real estate market.
In case you weren’t aware, the Florida real estate market is quite strong now. According to recent stats, the state has one of the best markets in the country and it’s expected to steadily grow in the future.
If you’ve been thinking about purchasing a home either for yourself or as an investment, Florida is an excellent choice. Today, we’re going to look into some facts that you might not know about the state’s real estate market.
Great Quality of Life
Easily the most exciting aspect of the real estate market in our great state is the quality of life. Thanks to healthy job growth, bright and sunny weather, multiple waterfront areas, theme parks, and the basic reinvention of the urban core, residents love it. In fact, living in Florida has become more popular in recent years, causing a bit of a boom in nearly every aspect. Plus, there’s every indication that this trend will continue far into the future, making the state even more attractive.
A “Booming” Tourist Destination
As everyone is probably already aware, the Sunshine State is a huge tourist destination thanks to theme parks, nightlife, access to the ocean, and relaxing atmosphere. Since tourism is so huge, it means that local business owners are able to flourish, which allows for more competition and higher salaries. This also affects the real estate market because it becomes a more attractive place for people to live and/or invest in property.
Home Value Increases
In recent years, the Florida real estate market has seen significant increases in home values. Earlier this year, the Zillow Home Value Index showed that the average value of a Florida home was just under $380,000. Tampa has specifically become a hotspot for home sales, with prices ranging from a median listing sales price of $237,000 in Sulfur Springs to the median price of $2.7 million in Sunset Park.
Investors Are Buying
Florida has also been experiencing an uptick in the number of investors who are buying homes and then renting them out. To use Tampa as an example, between July and September of last year, 25% of homes were purchased by an investor. According to the Tampa Bay times, Tampa Bay currently ranks 7th in nationwide metro areas for investors.
One of the biggest and most obvious reasons for the increase in home value and the quality of life has been Florida’s population growth. Since 2010, Florida has seen an influx of new residents to the tune of 2.7 million additional people. The clear winner in the state has been Tampa (including Hillsborough County), which has seen a net population gain of more than 230,000 new residents since 2012.
Steady Job Growth
The job market has been excellent for a long time, in large part due to Florida’s proactive, business-friendly government. In just the last 10 years, Florida’s GDP has grown by more than 62% to move above $1.2 trillion. Job growth between January and September of last year increased by 5.4% while the national average uptick was only 0.8% during that same time.
Basically, Florida is a great place for businesses of all types, and especially for major industries such as aerospace, life sciences, manufacturing, information technology, and more. All of this has assisted Florida in building a robust real estate market.
Average Market Time
No homeowner likes the idea of their house sitting on the market for too long. When this happens, they’re often forced to lower the asking price. Florida hits right around the middle in terms of the average number of days that a home is on the market before being purchased.
Whereas the national average ranges between 65 and 93 days, Florida clocks in at 83 days. This puts it at a little bit on the higher side, but it’s still an obvious sign of a healthy Florida real estate market.
Lower Cost of Living
It’s pretty obvious that the robustness of any real estate market will be at least a little better when the cost of living is lower. The state of Florida has been doing well on this front, with its cost of living sitting at approximately 2% less than the national average.
The biggest reason for this is that Florida has some of the lowest tax burdens nationwide, with moderate property taxes and no personal tax. Some of this is offset by higher home insurance costs due to the danger of hurricanes, but Florida residents still come out ahead in many cases.
Contact Marlin Title for Title Services
If you’re interested in purchasing property here in Florida, it’s important to have an experienced and professional title company by your side.
At Marlin Title, our team will ensure your property purchasing experience goes smoothly from beginning to closing. We’ll work with any realtor to ensure there are not hidden issues that can jam-up closings or cause any other delays in closing.