Florida property set for sunny 2014
Photo: Fifth World Art
The price of townhouse-condos and single-family existing homes in the Sunshine State continued to surge at the start of the year, continuing the market's recovery from the crash in 2007.
Florida Realtors have reported that January saw the median sale price for single-family existing homes reach $162,500, jumping 12.1 per cent year-on-year. However, an acquisition of this type of property still remains an attractive prospect for investors, as these properties represent lower priced investment opportunities when compared to those prices seen in other states; in California, $438,040, and in New York, $236,875.
This view was reflected in the number of closed sales of single-family homes seen throughout January, the total of which reached 15,000, 10.2 per cent higher than the figure 12 months previously.
These increasing prices and rising levels of buyer activity, however, are not the result of a dearth of properties on the market and a rush to snap up housing as inventories remain low; in fact, supply is correlating directly with demand, with new listings for single-family homes in January rising 13.8 per cent year-on-year.
Vitality also continues to return to the Florida condo market, with townhouse-condo values experiencing their 26th consecutive monthly rise, reaching the median price of $131,000, up 17 per cent. Again, this upward flow of prices has not caused condo sales to ebb, rising 9.3 per cent annually to reach a total of 7,377.
These price rises are not the result of stunted supply levels in the condo market; with new townhouse-condo listings in fact rising by 7.4 per cent in January 2014, determining that inventory is at a six months’ supply for townhouse-condo properties and a five to six months’ supply in January for single-family homes.
Forecasts for 2014 also mirror the positivity currently spreading through the Florida market, with Dr John Tuccilo, Chief Economist of Florida Realtors, predicting housing sales to rise between 10 per cent and 12 per cent. This rise in purchasing power is also set to correspond with a rise in general wealth across the state, with BMO Economics expecting GDP to increase by 3 per cent during 2014.
With boom normally comes bust, however the future ahead of Florida may buck the trend, as the population within the state is set to increase by 1.9 million people, according to the University of Florida's Bureau of Economic and Business Research. This population boom will see Florida become the third most populous state in the US, home to more than 21 million residents.
This influx of residents is set to see demand for housing rise and, combined with the record-breaking numbers seen in Florida’s tourist market last year, suggests the Sunshine State will enjoy a very bright 12 months.