Average Florida home price over $70,000 higher than a year ago, but market remains strong

by | May 25, 2022

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The median sale price for a single-family home in Florida was $410,000 in April, marking a $73,000 increase in cost compared to April 2021, and reflecting a $13,000 increase from March 2022, according to the latest market report from the Florida Realtors trade association.

Per the report, the median sale price was $410,000, but the average sale price was $597,719, 12.8% higher than April 2021, and $20,000 more than March 2022, indicating a still rising market.

Florida experienced 28,171 closed sales in April, up nearly 7,000 transactions since January.

“Closed Sales are one of the simplest—yet most important—indicators for the residential real estate market,” noted the report. “When comparing Closed Sales across markets of different sizes, we recommend comparing the percent changes in sales rather than the number of sales. Closed Sales (and many other market metrics) are affected by seasonal cycles, so actual trends are more accurately represented by year-over-year changes (i.e. comparing a month’s sales to the number of sales in the same month in the previous year), rather than changes from one month to the next.”

Excelling in not just the residential real estate market,  Florida also boasts strong regional commercial real estate metrics.

The Orlando-Kissimmee-Sanford metropolitan area earlier this month was named the strongest commercial real estate market in the nation in a published report by the National Association of Realtors. Orlando gained 10,000 new residents from other states, according to the most recent census data, spurring a spike in the local real estate economy.

Orlando received high scores in considered metrics like vacancy rates for commercial spaces, average multifamily rents, and weekly wages, leading to its pole position in the report.

Wages are rising 9 percent in Orlando, compared to 4 percent nationally while the office vacancy rate is just 8 percent, compared to 12.2 percent nationally. In the business sector, Orlando’s industrial vacancy rate is 3.6 percent, compared to 4.1 percent nationally with the retail vacancy rate at 3.8 percent, compared to 4.5 nationally.

The area received a real estate boom over the past year in both domestic and international migration, becoming a hotspot for individuals moving from South and Central American nations to Florida. Naturally, this led to a hotter market that benefits property owners.

Orlando’s effective rent, the final margin of profit a landlord has after building maintenance and expenses are considered, is $1,732 a month, up 26.4 percent from the year before.

Foreign real estate investors brought upwards of $12 billion to the Florida economy in the last year, totaling 22,500 existing homes purchased at a medium cost of $347,300, a real estate study reflected. The bulk of these purchases came from within the Miami Metropolitan Area, accounting for over 50 percent of properties purchased.

The strong trends continue in the southernmost areas of the state, too, as the Miami Association of Realtors registered the county’s third-highest month ever in terms of sales in March.

South Florida has seen an influx of new residents from both domestic and international origins, as well as businesses moving headquarters seeking more favorable tax structures. The surge in people inhabiting the city has led to higher demand for real estate, driving prices higher while keeping the market red-hot. Miami-Dade County home sales rose five percent year-over-year in March 2022, from 3,751 sales up to 3,939.

“Demand is driving the Miami real estate market and the lack of housing supply continues to fuel property appreciation and record sales,” Miami Association of Realtors Chairman of the Board Fernando Arencibia Jr. said. “Until we see new listings outpace active listings consistently month over month, our market will continue its current trajectory even in the face of increasing interest rates. Homebuyers with positive cash flow, strong jobs, and high equity are relocating to live in South Florida. The shift to working-from-home, Miami’s fintech expansion, and Miami’s stature as the No. 1 U.S. destination for global homebuyers continue fueling demand.”

1 Comment

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