5 Florida Real Estate Trends Potential Sellers Need to Know

According to industry experts, the Florida real estate market will remain strong throughout 2017. Median sale prices have increased in eight out of ten major Florida metros and home prices are expected to continue to rise. Here are a few other Florida real estate trends you need to be aware of if you’re considering selling a home this year. florida-market-trends.jpg

  1. Demand is high and supply is low:

    An increasing number of younger buyers, Millennials, in particular, have started to settle down. Home ownership is once again inching up, after hitting an almost 50-year low last year. Also, Baby Boomers are retiring, and Florida is a great market for both retirement and vacation home buyers. Because of these factors, demand is expected to remain high, and the existing supply of both resale properties and new construction is low.

    Key takeaway for sellers:
    This is good news for you if you’re planning to sell because high demand and low supply increase your odds of sparking buyer competition and getting more money for your home.

  2. Median home prices are increasing:

    In the first quarter of 2017, the median Florida home price was $219,999 – up 12.2% from this time last year. With 80% of major metros seeing increased median home prices in 2016 and a projected increase of 6.8% in 2017, homeowners who are considering selling are in a good position to do so. 

    Key takeaway for sellers:
    When median home prices are steadily increasing and demand is high, you have much better odds of getting good returns on your property.

  3. Mortgage rate changes aren’t slowing buyer interest:

    Despite anticipated rises in interest rates, the industry hasn’t seen any major impact on the number of buyers seeking a home loan. Looking forward, economists best guesses are that rates will rise some, but that rates won’t increase to a point where desirable loans are out of reach for qualified buyers. 

    Key takeaway for sellers:
    While interest rates may shift, there shouldn’t be any major implications for buyers, meaning that the market should continue to favor sellers for the foreseeable future.

  4. Buyers are eager:

    In many markets, the competition is so fierce that it is expected homes will sell at or above listing price. Buyers are advised to be prepared to make substantial down payments and seek pre-approval in order to act quickly when they find a desirable property. This is a common occurrence when supply is low.

    Key takeaway for sellers:
    This is all very good news. Buyer competition is the key driver of increased final sale prices, so take advantage! 

  5. Days on market metrics are trending down:

    The number of days a home is on the market before it sells has decreased in 2017. Statewide, homes were on the market for an average of 92 days in the first quarter of this year. That’s a 6.1% decrease from the first quarter of 2016. Furthermore, newly listed homes are going into contract more quickly. To date, the median days to contact (escrow) in 2017 has settled in at 45, which is 13.5% lower than it was this time last year. 

    Key takeaway for sellers:
    Once again, this is all good news. Homes going into escrow faster means buyers are eager to enter into contract and are submitting good offers. Additionally, a faster sale mean you’re less likely to have to lower your list price and are more likely to make more on your home at closing.

Understanding local real estate trends will help you make an informed decision on when it’s a good time to sell – and when you should wait. Right now, the cards in Florida are all stacked in favor of sellers, so if you’ve got a property that you’ve been on the fence about listing, it’s a good time to take the leap.


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