The Florida real estate market looks promising.
The summer housing market continues to grow and more homes are up for sale. Home prices in sunny Florida are also reasonable! Making an investment in South Florida should be something to think about.
Here are the top 10 key South Florida real estate market trends to pay attention to in 2018.
1. Real Estate Market Trends Account for a Strong Florida Economy
In 2018, the Florida economy could not be better.
In fact, the economy is expected to stay strong during the rest of 2018 and beyond.
In December, the state added over 27,000 jobs to the labor force. Business services also see growth as over 40,000 new jobs were added this year in those areas.
As the economy grows, more people are interested in buying up new properties. The economy definitely has an influence on boosting real estate market trends.
2. Rising Interest Rates on Florida Real Estate Properties
Prices of Florida homes are also expected to drop due to the increase in interest rates on Florida real estate properties.
Mortgage interest rates also continue to climb. As the Fed continues to raise the interest rate, more people will find it difficult to land good mortgages to provide them with the amount of money they desire to purchase a new home in the state.
Buyers will look at more affordable home options when the Fed continues to raise the interest rate. Floridian home sellers will, in turn, need to lower their prices in order to sell their homes during this time of rising interest rates.
If you are looking for property in South Florida, it may be in your best interest to seek properties where people are lowering the price over the course of a few months.
3. Hurricane Season Affects The Market
Yes, as a Florida resident you must take into account the fact that hurricanes will inevitably come your way.
As a South Florida resident, you also need to consider where you choose to live. It’s important to note that most of Florida sits on flat land accompanied by some nearby body of water.
The chances you take living in Florida come with the territory. With hurricanes, there are risks of flooding involved.
As homeowners, you need to focus on preparing ahead of time for any natural disaster and ensure that you are equipped with the right homeowner’s insurance.
A drop in real estate prices can also be blamed on an active hurricane season, as seen during the 2004 season when multiple storms hit the state.
4. Prices Drop Less in Condos Owned by Wealthier Homeowners
Let’s say you are not looking to buy a house in South Florida, but rather a condo.
This is a good choice for many people living in the bustling South Florida cities are looking for condos equipped with fitness centers, concierge, parking, and more amenities.
The condos owned by wealthier folks who stay in town during the winter usually see fewer price drops over time. You need to search for places that hold residents who occupy their Ft. Lauderdale condos all year round to find better deals.
5. The Season to Sell Is Coming in Fall 2018
If you are looking to cash out on your home and downsize, now is the time.
Real estate market trends are showing signs that the busiest time of the year is just around the corner.
The slowest seasons to sell your home are between January and February. Now that those months are done, you can focus on selling your home in a hotter market.
Try putting your house on the market in late August if you are looking to sell a single-family home.
6. House Prices Remain Hot
The summer continues to heat up in South Florida, as do the house prices.
The Florida real estate market has fluctuated over the last decade. More people are moving to South Florida to enjoy living in a beautiful city packed with sandy beaches and a bustling nightlife.
Large families are also living in the cities that make up South Florida as improvements in popular school districts continue to make waves as top choices to send their children.
House prices remain hot in the 2018 real estate market. Trends show a healthy market with competitive average house prices. In Miami-Dade County, for example, the median house prices average $535,000. In Broward, the median house price average is set at $432,000
7. Condo Prices Are Not Hot
On the other side of things, while house prices are steady, condos are less than impressive in 2018.
It’s becoming more difficult for people to sell their condos. In Miami, condo prices are declining fast. Over the past year, average price sales have dropped from $435,000 to $407,000
8. Foreclosure Problem in South Florida
Another issue to point out surrounding the South Florida real estate market involves foreclosures.
Foreclosures on properties are when property owners no longer have the funds to keep paying their mortgage payments on time. Not paying your mortgage will definitely indicate a red flag on your account.
Unfortunately, distressed properties continue to impact the real estate market in South Florida.
Many homeowners find themselves in trouble with their finances that leads to unpaid mortgage payments. Residential mortgage foreclosures affect the entire tri-county area.
As someone who is seeking to invest in a piece of South Florida property, you can take advantage of these foreclosed properties to flip them for a profit.
9. Population Growth Leads to Housing Demand
With an increase in population rates in South Florida, more residents are seeking homes in the area to live in. When you as a homeowner consider purchasing a home for your family in the South Florida region,
In 2018, there are great opportunities in the tri-county area to find your dream home.
10. South Florida Homes and Condos Produce Great Rental Income
Let’s say you want to own property in South Florida for the summertime to spend a long day by the beach with your kids.
During the winter months, you can make a killing renting out your place to tourists.
There’s something about Florida that makes it desirable during the winter, and that would be the total sunshine, even through the chilly month of December!
The returns on rental properties are outstanding. The capital gains from renting out your place will have you seeing 30%-40% ROI.
Looking to Sell Your Old Home to Move to South Florida?
These are the top 10 real estate market trends in 2018. We hope this post shows you exactly what is going on right now in the market for sellers and buyers alike.
BiggerEquity is located in the heart of South Florida, off Federal Highway in beautiful Ft. Lauderdale. Don and Rami will execute the best decisions for making a profit selling your property with experienced market knowledge.
Contact our team at BiggerEquity for assistance selling your home today!