The Florida property market began to cool down in mid-2022. Due to higher mortgage rates, sales fell by almost a quarter compared to 2021. Meanwhile, real estate prices continued to rise. In the first half of 2023, the volume of sales is expected to continue to fall, but not significantly – by approximately 10-15%. However, builders of single-family homes do not expect demand for their services to fall, as this type of real estate remains the most popular among Americans.
Content:
- 2022 results in Florida
- Average home price in Florida
- Houses and villas in Miami
- Houses in Palm Beach
- Condominiums and townhouses
- A rural idyll
2022 results in Florida
In 2022, Florida sold almost 290,000 single-family homes and 125,000 condos and townhouses. Home sales fell by 18% compared to 2021, and condominium/townhouse sales together decreased by approximately 22%. At the same time, the Sunny State still lacks free housing - the queue of those wishing to buy apartments in Florida has decreased, but not by much. If there are no new properties on the local property market, all houses and apartments for sale can be sold in 2.5 - 3 months. Considering that the national average is 6 months, the demand for housing in Florida is high.
Average home price in Florida
The average price of a single-family house in Florida in 2022 was $402,500 with an average apartment price of $306,500. However, the average values give few offers that will interest a potential buyer.
In the most sought-after places in the state, such as Miami or Palm Beach County, investors prefer to choose highly-liquid and high-quality housing in the "about $1 million" category. Such an investment will be profitable in the next few years as experts predict that prices for real estate in Florida are not expected to decline and a decrease in sales will support the shortage of supply in the premium segment of the market.
Houses and villas in Miami
Miami-Dade County, where Miami City is located, has the highest sales results. 2022 was the second most successful year in the history of home sales. At the same time, median house prices in Miami have been growing for 11 years, amounting to $530,000 at the beginning of 2023. It is worth remembering that half of the houses sold are below the median price and half are higher. This means that the median better characterises the average value in a market with an asymmetric distribution. This is exactly what the Florida real estate market is.
Miami continues to be the state’s largest home and villa sales centre, including the luxury category:
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The average house in Miami with a value of approximately $1 million will have either one- or two-storeys, have 3- 4 bedrooms, with a total area of 160 to 240 m2 and be located in the city centre.
For example, a two-storey, 4-bedroom house of 230 m2 located next to the Coral Gables quarter can be sold for $1.05 million, which is approximately $4,500 per sq. m. Moreover, this house has an excellent location, a large green plot of 500 m2, excellent interior decoration and a fully equipped kitchen. Although the house is almost 100 years old, it is in great condition and will delight its new owners for many years. Moreover, it is difficult to find a new house of the same size in areas developed years ago. However, there are only 2 bedrooms in the main building, the others being in smaller houses nearby. 2 or 3 families can live on that property, preserving their privacy, or the small houses can be rented out. Remember that rental prices in Florida keep going up.
- A similar house, but one-storey, built in 1941 and with a swimming pool, cost $1.1 million even though it has only 3 bedrooms and a total area of 160 m2. Nevertheless, it has a plot of 700 m2 and is located in one of the best areas of Miami. The price per square metre in this area rises to $6,500-$6,800 but is an excellent investment. Don't expect newer or more spacious housing options in the city centre for that price.
- Million-dollar houses are also located in the Miami Design District. The houses in this area are built closer to the sea and, of course, are more expensive. Prices start at $7,000 per sq. m and the houses were not built after 1940. For example, a 5-bedroom house for $1.1 million has a total area of 132 m2 and was built in 1938. Because of the overall size of the house, the bedrooms are quite small. Of course, like most properties for sale at such prices, the house is completely renovated and equipped with modern plumbing, cooling systems, electricity and sometimes even a smart home system with built-in system control via a computer or smartphone.
Houses in Palm Beach
In Palm Beach County, with a population of approximately 1.5 million, more than 15,000 single-family homes were sold in 2022. This is the 9th highest indicator in sales history, unlike Miami. The decline in sales compared to 2021 is due to increased mortgage rates, high real estate values (the median house price in Palm Beach increased by 4% to $545,000 over the year) and a reduction in supply.
Nevertheless, Palm Beach has enough houses for approximately $1 million:
- The majority of sales come from the district’s major cities, such as West Palm Beach, with a population of approximately 120,000. Of course, the standard of a million-dollar house in this area is significantly higher than in Miami. For example, a 4-bedroom house of 285 m2 on a 1,000 m2 plot of land will sell for $940,000. A distinctive feature of this house is a large luxury resort-type swimming pool and an additional outdoor kitchen. The house was built in 2001 so it has a modern internal system and design layout.
- Moving further away from the coast, potential buyers in Florida receive offers with more spacious housing options for the same amount of money. For example, in Wellington, with a population of 65,000, located 100 km from Miami and 13 km from the ocean, you can buy a 6-bedroom house of 370 m2 for $980,000, a rather attractive price of $2,600 per m2. The house, built in 2004, has a large swimming pool, a garage for 3 cars and a spacious kitchen with household appliances. There is a trend in other cities – the price is dependent on the distance from the ocean.
Condominiums and townhouses
In Miami, the median cost of an apartment in a condominium has risen by 5.5% over the past year alone, amounting to $374,500 per unit. Nevertheless, there are many offers on the market with a starting price of $1.5 - $2 million, especially in luxury development projects in Florida, so the price of a good apartment for $1 million does not seem unusual:
- A 2-bedroom apartment of 115 m2 in the coastal area of Edgewater can cost $1 million. Reasons? This is the most expensive and fashionable house in the district, with a stunning view of the bay and amongst other features, the building has swimming pools and fitness centres. In addition, the list of further amenities includes a spacious balcony, high-quality interior decoration and panoramic windows that fill the rooms with light and air, as well as a sauna, Pilates and yoga studios and a barbecue area.
- Overall, it is difficult to get a two-bedroom option in Miami for this amount although, occasionally, it is possible. A 3-bedroom apartment of 274 m2 in a condominium can cost $995,000. Bearing in mind the building would have been built in 1972 and the relatively low cost of the apartment is due to major repairs which would be necessary, after which prices should rise. The building has a large swimming pool, gym and tennis court, and the internal state of the furnished apartment is good. In addition, the large balcony offers a beautiful view of the bay.
In the popular district of Palm Beach in 2022, 13,720 apartments in condominiums were sold. This is even though the median price for these apartments has increased from $263,000 to $300,000 in a year. In addition to new buildings, offers on the secondary market are also popular:
- In West Palm Beach, a condominium offers a million-dollar apartment of 160 m2 with 2 bedrooms. The building, built in 2008, has a beautiful interior layout, a large kitchen with modern appliances and a wide balcony encircling the building which offers a breathtaking view of the surrounding area. The bay is within walking distance and together with other advantages, this ensures the right price level.
A rural idyll
You can find true provincial America in highly-urbanized states. Buying houses in Florida, in a small town, away from the hustle and bustle of the city, with clean air and nature walks is an ideal option for many buyers. For them, the state offers a variety of options, such as:
- The resort town of Naples is located along the Gulf coast and is famous for high real estate prices. Local houses can also be located far from the coast – for example, a house 20 km from the coast may cost $1 million if it has enough space and infrastructure. The total area of 195 m2 with 4 bedrooms, a garage for 3 cars, a large plot and richly decorated interiors provide everything for a comfortable life while the residents are close to all the benefits of civilization.