Florida’s housing market has been booming over the last few years, even in the face of the COVID-19 Pandemic. With continued population growth projected for Florida, 2022 looks like another strong year for Florida’s real estate market.
U.S. Census statistics show Florida’s population reached 21.5 million in 2020, up 14.6% in the past decade, with the largest growth taking place in Jacksonville and Central Florida. Florida faced record-breaking numbers with the daily number of people moving into the state reaching ~900 people per day over the last year. Much of this can be attributed to companies continuing to allow their employees to work-from-home, creating the idea that home could essentially be anywhere you may desire.
According to an article from Florida Realtors®, Michael Saunders, founder and CEO, Michael Saunders & Company in Sarasota, citing a recent CoreLogic report stated that along with in-migration, the pandemic increased demand from millennial buyers. “Several years ago, we were talking about how millennials would be constant renters,” she says. “Now, they are streaming out of cities and buying homes where their dollars go farther. Many are feeling more secure about their jobs and are starting families as well.”
Saunders adds that another demographic trend to watch is the growing number of women professionals and divorcees buying homes on their own. “Women are making their own business decisions, creating opportunities for agents interested in serving this market,” she says.
With mortgage rates continuing to sit at or near historic lows, home buyers still have buying power when it comes to the rising home prices we see here in Florida. While mortgage rates may start to trend up in 2022, they are projected to remain anywhere from 3 to 3.5%. These low mortgage rates, coupled with statewide home appreciation have allowed many homeowners to move-up because they’ve been able to tap into their increase in equity when making new home purchases.
New construction is booming in Florida, and while there has been an increase in production of new homes, the supply of new and existing homes has remained below the level of demand here in Central Florida. Supply and demand in real estate has been one of the most talked about real estate topics among buyers and sellers alike.
From a statewide perspective, a shortage of inventory and higher prices in the second half of the year point to a slower sales pace in 2022. But that could be a positive factor for the long-term health of the market, according to Natalie Arrowsmith, president, NextHome Arrowsmith Realty in Apopka and president of Orlando Regional Realtor® Association (ORRA) as quoted in a recent article by Florida Realtors®.
“The market has shifted a bit, and a seller with an attractive home might get four or five offers rather than 15 to 20 bids,” she says. “That’s a friendly situation for both buyers and sellers. It also makes owners more comfortable about their ability to find a new home and could lead to more listings in the next year.”
There are a number of reasons people continue to relocate to Florida, one leading factor, of course, is found in our nickname, “The Sunshine State.” Florida continues to offer not only beautiful weather but a lifestyle many yearn to achieve. From the beautiful white-sand beaches on both coasts, to the world-renowned theme parks, to the constant entertainment and recreational activities available to fill anyone’s calendar, Florida has so much to offer its residents. In addition, Florida continues to be more affordable to live with no state income tax.
With lockdown, social distancing, and other safety measures that were put in place over the course of the Pandemic, many people began to realize the importance of truly loving where you live. There has been an increase in finding homes with spaces for a home office, an additional rec room for homeschooling or indoor exercise, and outdoor spaces you can truly enjoy. Quality of life has become an important consideration for many and finding a home that can be one factor in improving the quality of life for a person or family has become important too.
When looking at the most recent data released from Florida Realtors®, the statewide median sales price for single-family existing homes in October 2021 was $358,950, up 17.7% from the previous year. Last month’s statewide median price for condo/townhouse units was $260,000, up 17.6% over October 2020. Homes in Florida have continued to appreciate in value and while that trend may start to level off a little in the next year, it will not stop anytime soon.
In September 2020, the newspaper Estadão* published an article* that said: “On the one hand, low interest rates have too restricted the horizon of traditional investment gains, such as fixed income, leading to the need for diversification, which opens up space for investments abroad. On the other hand, the real has already accumulated a loss of close to 40% against the dollar. Therefore, a property in the US offers investors the possibility of making exchange hedges, protecting them from a further devaluation of the real, insofar as part of the equity will be immobilized in hard currency.”
Combining the high tourist movement in Orlando and its surroundings, the reality of the current financial market and an efficient property management, it is possible to achieve satisfactory occupancy rates. Often, the cost of mortgage installments is absorbed by the income generated from short-term leases. Periods when the investor is not using the property are perfect for this. Thus, buying a property in Orlando is even easier.
It is noteworthy that property management is an important service available for hiring when owning an Orlando investment property. Glasstone has years of experience in the property management field and guarantees that, yes, it is really feasible to optimize the property’s income. With a series of precautions that enhance the satisfaction of guests and owners, buying a property in Orlando becomes even more intriguing and profitable. It is an extensive list of practical and bureaucratic recommendations and details that, when administered by those who know the subject, generate positive results.
*Source: https://einvestidor.estadao.com.br/investimentos/brasileiros-investem-mercado-imobiliario-estados-unidos
