The Florida real estate market keeps outperforming the US national average. The number of houses for sale in January 2023 was 138,000, a 36% increase over the previous year. However, demand continues to outstrip supply.
Content:
- Figures for January − February 2023
- What types of real estate investors are looking for?
- The dynamics of Florida housing prices in the first quarter of 2023
- Factors influencing Florida housing demand
- Mortgage rate outlook for 2023
- 2023 real estate sales trends
Figures for January − February 2023
In January, 21,512 houses were sold in the state. This figure is close to that of February. By the end of March, roughly the same figures are expected. Miami continues to lead among all cities in Florida in terms of the influx of buyers of real estate for their own residence, investment, and rental purposes. However, the numbers are beginning to level off across the state. Experts predict that the housing market in South Florida, specifically Miami-Dade County, will grow by 3.4% in 2023. At the same time, the number of houses sold in northeast Florida in February has already risen by 28.2% over January.
Demand for residential and commercial real estate in Florida is high thanks to Florida's economic growth and buyer preferences that have shifted as an outcome of quarantine restrictions in 2020–2021. Americans from other states, as well as foreigners looking to relocate to Florida, are fueling a real housing boom in the Sunny State. The state's attractiveness is enhanced by:
- low property taxes
- high economic activity
- Walt Disney World and Universal Studios
- a year-round warm climate
- beautiful nature and plenty of beaches
- a well-developed tourism sector
Along with Miami-Dade County, the following cities and municipalities are popular among homebuyers: Tampa, Orlando, Fort Myers Beach, Jacksonville, Dalton, and a number of small towns along the coast.
What types of real estate investors are looking for?
Based on the results of the first two months of 2023, it is clear that buyers in Florida prefer houses with three bedrooms and two bathrooms. This is the most common type of housing for a large family. More single-family homes of this type were constructed in South Florida earlier this year. There were 4,787 new listings for this type of housing in Miami-Dade, Broward, and Palm Beach counties. This is 45% higher than the figures for 2022 and 2021.
Buyers will have access to 30,940 residential units by the end of the first quarter of 2023, including condominiums, townhouses, and single-family homes.
The dynamics of Florida housing prices in the first quarter of 2023
The median selling price for a single-family house in Florida at the end of the first quarter of 2023 was $385,700. In Duval County, the average price rose to $315,000 in February and up from $307,500 in January. The price in Baker County reached $285,000. The median house price in Nassau County in January was $382,635 but it fell to $366,000 in February.
According to experts, house prices in the State increased by 8.8% over the previous year. The annualised increase in price in Miami-Dade County was 4% in January, 8% in Broward, and 13% in Palm Beach. Condominium and townhouse prices went up by 22% over the previous year. Apartments in development projects in Florida and townhouses in Miami-Dade County increased by 11%. Broward County prices rose 13%, while Palm Beach County prices rose 17%.
Factors influencing Florida housing demand
Florida real estate prices are determined by the region's economic development, high demand, and a large influx of new residents. According to commercial organisations, the leaders in the number of sales in various months in addition to Tampa and Miami were:
- Palm Beach
- Daytona Beach
- Orlando
According to Americans, the Sunny State is one of the most comfortable places to live in the United States. Residents from New York and Western states like California and Arizona frequently relocate here. According to a recent census, Florida will gain over 400,000 new residents between 2021 and 2022. As a result, Florida's population reached 22.24 million people. In terms of population growth, the state has surpassed Texas. Florida is now the third most populated state in the country.
Mortgage rate outlook for 2023
Experts predict that US interest rates will fall to 5.25% by the end of 2023.
2023 real estate sales trends
Over the last decade, Florida has been one of the best regions in the world for long-term investment. Over 287,000 real estate transactions were recorded in Florida in 2022. January and February indicators in the current year give every reason to believe that the results of 2023 will outperform the statistics of 2022. Foreigners are free to buy property in the United States, including Florida.
If you are considering purchasing a home in sunny Florida, now it is the time to begin looking for a suitable property. You can always contact Florida.Realestate representatives for real estate advice and current offers, including new off-plan projects in Florida. Call or write to our online chat managers, and they will answer all of your questions!