Florida Real Estate: Will Home Prices Continue to Rise?
Mar 25, 2024
Last week was Fed week and things are getting spicy.
Ole' Jerome says they're done hiking rates and everything is going to plan.
That sent stocks up, rates down, and got me wondering about this question:
Are home prices in Florida high, low, or just right?
This is an important question because the answer determines what actions your clients take.
If you think prices are high, you're likely to hold off making a home purchase compared to the person who thinks things are cheap.
People who have lived in Florida for 5+ years likely think prices are sky high.
This is because they've watched them go up over that timeframe and probably find it hard to believe "that house is selling for that much."
While prices have gone up in most areas across the country, the question remains: could they go up even further?
Florida Home Price Context
Above is a map of the median home prices throughout the metro areas in Florida.
Blue means it's less expensive and red means prices are higher.
It may surprise you to see that Naples is the most expensive metro in Florida as of February.
The difference between South Florida and the rest of the state is pretty significant.
Also, another surprising takeaway is that only Miami, Naples, and North Port are more expensive than the median price in the nation ($417k).
Does that challenge your mindset about Florida home prices?
It does mine!
By the way - this is the simplest way to determine if real estate is relatively cheap or expensive.
If your market is above the national average, it could be considered expensive and vice versa.
Finding Opportunity
Everything is relative.
What's expensive to one person can be cheap to another.
This is why it's so important to get context and compare your local market to outside areas.
Further, seeking context allows you to see a more complete picture of reality.
When we've got our blinders on and we're focusing exclusively on our local market, it can be easy to lose sight of how we stack up to the rest.
With as many people relocating (even from one city in Florida to another within the state), we've got to be aware of outside markets.
Ultimately, operating without context has negatively impacted many real estate agents over the years.
If you've thought prices were high, your clients probably picked up on that and altered their action because of it.
There aren't many people who regret buying a home in Florida over the past 15 years - even though prices might have seemed high at the time.
Buyers who held off because their agent made comments about how they couldn't believe that home was listed for so much likely missed out.
Be a Market Insider: research the facts, add context, and present the insights to your clients.
Do this and you'll immediately stand out in the crowd of agents.
In Florida, we have the luxury of a booming economy, strong real estate market, and a tremendous number of people relocating here with high incomes.
Moreover, we cannot underestimate how much prices (especially real estate) could rise as the Fed shifts into stimulus mode.
It's up to us to share these facts to help our clients make wise moves.
Let's crush it in the final week of March! ๐
Dr. Alex Stewart
Founder
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