Context Matters: Are Home Prices in Florida Relatively Cheap?

We could probably divide Florida into a couple groups:

1. Locals who have lived here for a while.
2. Newcomers who relocated here in the last few years.

In fact, over 2,050,000 people moved to the Sunshine State since from 2021-2023 according to the Census, which means nearly 10% of our total population is new to the state. 🤯

If you've been here for 5+ years, you're probably looking around at the home prices and thinking "how on earth did that house sell for that much?" 🥵

And if you're new you're asking the same question, but with a completely different tone.

More of a "that house only costs how much" kinda tone. 🤑

It's all relative

Part of the challenge when living in one place for a while is you get used to the way things have been and changes can seem unreasonable.

Locals in Florida are looking at real estate and thinking about how expensive it is.

At the same time, people from outside the state are looking in and thinking about the deal they can get.

Here's a map of the median home price by metro area across Florida:

In total, the median price of real estate in Florida is currently $380,000. 🏡

The most expensive markets include:

1. Naples: $589,000
2. Miami: $490,000
3. North Port: $430,000
4. Orlando: $401,000
5. Port St. Lucie & Destin: $400,000

And the most affordable metros are:

1. Sebring: $247,000
2. Homosassa Springs: $260,000
3. Ocala: $281,000
4. Tallahassee: $295,000
5. Pensacola & Lakeland: $315,000

Finding Opportunity

The real opportunities start to become visible when you zoom out and get context. 🖼️

Just by comparing the metro areas within the state, we can see significant differences in costs.

Then, consider that the median home price nationally is $420,000.

Suddenly, the narrative in your head goes from Florida is expensive to Florida is actually below the national average in most areas.

Only 3 of the 22 metro areas are above the national average which is a big deal as well. 👍

Going deeper, check out the median price in the top states where people are relocating to Florida from:

1. New York: $420,000 
2. Georgia: $363,000 
3. California: $868,000 
4. Texas: $340,000
5. New Jersey: $575,000

Depending on where in each state they're coming from and where in Florida they're going, you can see how the costs compare.

Now, we know home prices aren't the only thing that matter.

There's also cost of living, taxes, insurance, etc. to factor in and I'll be going in depth on that at my next MarketPulse 360. 

That said, context around home prices is a great place to start and helps to adjust your mindset around relative value..

Where people are coming from matters a lot in how they view the real estate they're buying.

Stay open to what a "deal" looks like and recognize that real estate is all relative. 🚀

Dr. Alex Stewart
Founder

Still have questions? Here are some answers:

Q: Is it a good time to buy in the Florida housing market in 2024?

A: Whether it's a good time to buy depends on individual circumstances. Buyers should consider factors like mortgage rates, housing supply, and their financial situation. Experts suggest that for some, it may be a strategic time to enter the market, especially if they are looking at long-term investment in the Florida real estate market.

Q: How might the national housing market impact the Florida housing market in 2024?

A: The national housing market can influence the Florida housing market through changes in interest rates, economic conditions, and buyer sentiment. If the national market experiences a downturn, it could lead to a housing market crash in Florida, affecting property prices and home sales.

Q: What are the market predictions for the Florida real estate market in the next 5 years?

A: Market predictions for the Florida real estate market over the next 5 years indicate a continued increase in home values, though the rate of growth may stabilize. Analysts expect fluctuations influenced by economic factors, interest rates, and housing demand.

Q: Are there any signs of a housing market crash in Florida?

A: While some experts express concerns over a potential housing market crash in Florida, current indicators suggest that a crash is unlikely in the immediate future. However, rising insurance costs and property taxes may impact affordability and could contribute to market shifts.

Q: What is the average time homes are on the market in Florida in 2024?

A: The average days on the market for homes in Florida in 2024 is projected to vary by region and property type, but overall, homes are expected to sell faster in high-demand areas. The trend indicates that single-family homes may have shorter listing durations compared to condos.

Q: How is the demand for housing in Florida affecting home sales in 2024?

A: The demand for housing in Florida remains strong due to factors like job market growth and migration trends. This high demand is expected to keep home sales relatively steady, although fluctuations in mortgage rates and the number of homes for sale could influence buyer activity.

Q: What role do interest rates play in the Florida housing market in 2024?

A: Interest rates can significantly affect the Florida housing market in 2024 by influencing mortgage rates and overall affordability. Higher interest rates may deter some buyers, while lower rates could stimulate demand, impacting home sales and housing prices. It's worth recognizing that roughly 33% of all sales are cash sales, though, which helps reduce the overall impact of interest rates. 

Q: What are the typical challenges for sellers in the Florida real estate market in 2024?

A: Sellers in the Florida real estate market in 2024 may face challenges such as rising competition, fluctuating property prices, and potential buyer hesitance due to high interest rates. Additionally, sellers must stay informed about current market dynamics to set realistic listing prices.

Q: How can buyers effectively navigate the Florida housing market in 2024?

A: Buyers can navigate the Florida housing market in 2024 by working with a knowledgeable real estate agent, staying informed on market trends, and being prepared to act quickly when desirable properties become available. It's also important to assess personal finances and secure pre-approval for financing to enhance purchasing power.