4 Current Trends in Florida Real Estate

The increase in prices of Florida homes has been one of the most noticeable trends in the real estate market. Most experts would classify the current marketplace as a seller’s market since the decrease in housing inventory has given much of the negotiating power to the sellers. Many homes are been sold at or above list price, and there are countless examples of newly listed homes receiving 15 to 20 offers on the first day that the property is listed. The median sales price for Florida single family homes in April 2021 is $336,525.00, which is a 22.4% increase from last year’s median sales price of $275,000.00. The median sales price for Florida condominiums is $250,000.00, which is a 19.6% increase from last year. The large pricing jumps cannot continue indefinitely, but it has been difficult to predict when the sales prices will start to cool off.

This is the key factor causing housing prices to soar in Florida: lack of housing inventory. When there are a fewer number of houses on the market, then that lack of supply creates an increase in prices, which is exactly what has been happening in Florida. In April 2021, Florida only had a 1.1 months’ supply of houses, and historically a 6 month supply of houses is considered in the normal range. This means that there are considerably fewer houses on the market, and not near enough to satisfy the demand for housing. This is probably the most significant factor causing housing prices to increase. It is possible that this supply could start to increase as more builders construct new properties, and the eviction and foreclosure moratoriums expire; however, it could take until 2022 until we start to see a significant increase in housing supply.