Updated July 12th, 2019
Sunny Florida! Home to an abundance of beaches, flocks of retirees, and a popular destination for vacation homes. What’s not to love? Well, the appeal of Florida living isn’t any secret — the state has seen recent population growth in almost every major metro area. And with this has come a spike in home values in 2019 and the recent past.
We’ll break down the Florida real estate market below, but since the market in each city (even each neighborhood!) in Florida can differ, be sure to reach out to a local real estate agent and rely on their market expertise.
2019 Real Estate Market Forecast for Florida
Is the housing market going up or down 2019?
The Florida housing market is still projected to increase in 2019. According to July 2019 data from Zillow, values in the state rose 4.7% over the last 12 months. Homes spend a little under three months on the market on average before the seller accepts an offer.
Unemployment rates, tax rates, population growth, and mortgage rates are the major players to affect the real estate market. Florida’s unemployment rate of 3.4% as of May 2019 is lower than the national average of 3.6%.
One reason Florida is such a hot destination is that the state is one of seven that has no state income tax. The population of the state of Florida has grown about 1.63% in 2019, the third fastest growing states in the United States. It has grown a whopping 11% since the last U.S. Census in 2010.
While experts predicted mortgage rates to climb in 2019, the market surprised us by tumbling to an almost two-year low of 3.82% in June. Now, experts are predicting these rates to stay stagnant. This means lots of people will continue to shop for homes throughout the end of the year.
Will home prices continue to rise/fall into 2020?
Zillow predicts the increase in housing values to slow to just 1.8% over the next 12 months, according to July 2019 data. This slowing of growth may be because of the recent hurricanes hitting the area.
If you’re looking to buy a home in the Miami/Fort Lauderdale area, you’re in luck. While the Florida market is still hot, these areas have cooled recently. In fact, July 2019 data from Zillow suggest Miami values will fall by 0.6% over the next year. Fort Lauderdale values may fall a predicted -1.2%. Tampa values are estimated to stay stagnant or decline.
Orlando is a seller’s market, with values expected to increase 2.5% over the next 12 months. Values in Tallahassee are projected to increase by the same amount and those in Jacksonville by 3.6%.
Many older millennials with growing families will be upgrading from their first homes in 2019, and they’re expected to represent over 45% of mortgages issued this year. There will be stiff competition among millennial buyers for mid-price level homes. Current homeowners should consider if now is the time to sell if their home is in a price range that would appeal to this buyer.
When Is the Best Time to Sell a House in Florida in 2019?
The best time to sell a house in Florida is in June. You’ll get $20,000 more on average than listing your home during the winter off season and sell it almost a week faster. Homes for sale in June sell in an average of 48 days in Florida.
The Top 5 Hottest Florida Markets
When Is the Best Time to Buy a House in Florida in 2019?
If you’re looking for the lowest price, January is the best month to buy a home in Florida, by far. You’ll save an average of $20,000 over buying a home in June and can browse homes at a more leisurely pace by avoiding peak season.
Sellers may have had their homes on the market for some time if you’re buying in January, or they’re looking for a quick sell because of a job change. Either way, they’re likely motivated to make a deal and will negotiate on price — capitalize on the opportunity! The downside to this strategy is that you’ll have fewer options, as inventory is lower during this off-season.
What is the most affordable place to live in Florida?
According to livability.com, Kissimmee is the most affordable place to live in Florida — excluding that rundown town in the boondocks — population 12. While prices are trending upward quickly in this city, the median home value still sits at just $218,700 — as of July 2019 data from Zillow. With those prices and considering it within 30 minutes of Orlando, you can’t beat it.
Is real estate in Florida a good investment?
Florida is an excellent destination for investing in real estate. The gorgeous weather brings a steady stream of both younger generations and retirees, many of whom rent for at least some time before buying. Plus, there’s an easy market entry, as you can still find homes for under $200,000 in desirable areas like Tampa or Jacksonville.
Where can I invest in real estate in Florida?
Demand for single-family homes has been on the rise, but this doesn’t necessarily convert to more home buyers in Florida. Many are still looking to rent instead of buy. This could be for one of several reasons — new Floridans are waiting to buy until they’re more established, recently relocated retirees want to feel out the area first, or a younger Floridan doesn’t quite have the funds to purchase just yet.
While there are plenty of apartments in which to invest in Florida’s major metro areas that have cooled — like Miami or Key West, stick with single-family homes in other areas. This leaves you open to sell to incoming retirees or millennials looking to settle down as a back-up plan to being a landlord.
What are the best Florida markets to invest in 2019?
Buying a Home in Florida
If you’re thinking about purchasing a home in Florida, enlist the help of a local, trusted real estate agent. The state’s market can be tricky and you’ll want to have an advocate on your side when you’re ready to pull the trigger on your dream home.
Besides helping you uncover additional cost-savings opportunities, Clever Partner Agents also offer on-demand showings — sometimes in less than an hour — so you know you won’t miss out on that amazing beach house in Miami. Plus, you’re eligible for a $1,000 buyer’s rebate on any home you purchase for more than $150,000 in Florida.
Selling a Home in Florida
Clever also works with major brands, like Century 21 and Keller Williams, to help sellers get a significant discount on commissions. Clever Partner Agents are top-rated real estate agents from these brands who are experts in their local markets. If you’re selling your home, Partner Agents offer the same full service as other agents, the only difference is that they have agreed to work for a flat fee of $3,000, or 1% if your home sells for more than $350,000.
Buying Investment Property in Florida
If you’re looking for an investment property, use an experienced agent to aid in your search. They have their finger on the pulse of what’s happening in the local area and gaining this in-depth knowledge takes years of experience.
To talk to a representative, fill out Clever’s online form. Our reps will answer your questions and then connect you with an experienced agent in our Partner network for a no-obligation consultation.
FAQs about 2019 Real Estate Market Trends in Florida
What’s the current Florida market outlook?
While Florida’s real estate values have leveled out some, its market in 2019 is still strong and growing, just not as rapidly as in the recent past. Experts were surprised by mortgage rates tumbling to an almost two-year low in June 2019, resulting in a continued seller’s market. The market is estimated to continue to grow around 2% throughout Florida as a whole in 2020.
Is Florida a buyer’s or seller’s market in 2019?
Florida continues to be a seller’s market in 2019, with growth estimated at 1.8%. While experts predicted mortgage rates to spike, they dipped to an almost two-year low in June 2019. The year should continue to be a seller’s market throughout the end of the year, but may shift to a buyer’s market soon.
What is the average cost of a house in Florida?
The median sale price of a home in Florida was $228,300 as of April 2019, according to Zillow. Median home values in the state are higher at $233,200 and are expected to rise 1.8% over the next 12 months. The median list price per square foot in Florida is $167 and homes sell in an average of 87 days.
Why is the Florida housing market so high?
Florida’s population is one of the fastest growing in the United States, making demand for mid-priced homes high. Pair this with mortgage interest rates that have dipped to a nearly two-year low and demand is even higher.
Are houses in Florida cheap?
You can find homes in Florida for around $200,000, which may be considered “cheap” depending on where you’re coming from. However, wages are low compared to the rest of the county, so homes may not be considered “affordable.” Therefore many Floridans rent instead of buy.