The real estate market in Florida for 2020 is expected to have higher statistics compared to 2019. New trends in the local housing market are helping to prepare investors for higher returns. In order to invest properly, a person needs access to accurate public and private data. The information gathered on this page is from multiple sources that are considered reliable. These Florida real estate market statistics for 2020 can be used as a general guide for experienced or new investors.
The Median Sales Price for a FL Property
There is varying data across the 67 counties in the Florida real estate market. In a larger city like Miami, there is a much larger price difference compared to a less populated county.
For end of year data in 2019 into 2020, a median sale price for a typical single-family property in the following counties is as follows:
Lee County: $265,000
Walton County: $285,000
Volusia County: $230,202
Alachua County: $232,500
Citrus County: $162,000
Duval County: $259,900
Polk County: $214,681
Broward County: $365,400
Collier County: $428,500
Sarasota County: $305,500
Marion County: $170,000
Lake County: $275,000
Brevard County: $240,000
Bay County: $240,000
Escambia County: $219,400
St. Lucie County: $255,500
Charlotte County: $227,860
Indian River County: $255,000
Highlands County: $157,250
Wakulla County: $215,000
Hillsborough County: $255,000
Sumter County: $248,000
There are a lot of variables that can affect the selling price of a home in the Sunshine State. Things like mortgage rates, market demand, status of foreclosure and supply and demand.
Typically, from year to year, the status of vacant homes can change market data. For houses that are not occupied, these values are figured into a yearly percentage. According to RealtyTrac, 19.3% of homes were still listed as vacant at the end of the year. This includes single-family, duplex, condos and multi-family properties in Florida.
How Days on Market Affects Values
Investors as well as realtors understand the need to sell a piece of property quickly. Once a home is on the market for more than 120 days, the value can begin to depreciate. Factors like neighborhood, proximity to local schools and condition of the house are taken into consideration for pricing.
A hot, new trend in the next decade is targeting Millennials moving to FL for the first time. In order to capitalize on this trend, most listings for a property have a life of about 125 days. Depending on how the house is listed, it could be higher or lower than the average days on market.
For investors seeking a buy and hold scenario, increasing profit through home rental is common. New avenues for rental income like AirBnB are helping more people to realize much faster returns instead of waiting for time on market to sell a house. In many cases, an annual cash profit of 5.5% is common.
Depending on the mortgage rate, the actual cash-on-cash return could be higher of lower for an investment. In recent years before 2020, the interest rate has been between 4.5% and 3.4%. While this is attractive to long-term investors, not everyone choose to carry a 30-year mortgage on a homestead.
The days on market affects home values in Florida differently than in other U.S. cities. Because more than 1,000 new people move down South daily, the increase in population is affecting the supply and demand that is available of existing home inventory.
2020 Housing Market Predictions in FL
Fears of a recession have been expressed by companies like Zillow over the recent 24 months. A rise in interest rates and short supplies of houses are two of the factors that have stirred fears among investors.
While predictions are just one element to consider, relying on accurate data and analysis are usually the best ways prior to spending money. The National Association of Realtors publishes quarterly data in its HOME report annually based on surveys in local cities.
For instance, in the Florida real estate industry, 67% of people believe it is now the right time to purchase a property. This is compared to the 74% of respondents that believe it is a great time to sell a home in 2020. According to taxation data, most people have agreed that prices for an existing property have risen in the past 12 months.
Condo and townhouse properties are included in market data. For men and women who invest in such structures, the data appears to be growing annually. The split between stick-built houses, mobile homes, apartments, and condos is expected to continue this year. Investors using hard money or cash can continue to find opportunities to earn a return on their investment while minimizing risks.
GenXers are the second most targeted group that is now purchasing real estate across the South and in Florida specifically. Sellers who plan to target these groups can use the data to their advantage.
With quarterly reports and actual data still pending for this year, many analysts predict that the housing industry will improve. Home prices are expected to increase as well as the number of investment properties in booming population centers. Cities such as Jacksonville, Tampa, Daytona Beach and others are expected to continue to be hot markets for U.S. and foreign investors.
Housing Industry Slow Down and Job Growth
Recent labor statistics indicate that Florida has one of the lowest unemployment rates in the United States. At 3.7% at the end of last year, job growth is one thing that is driving domestic and foreign investors to the Keys and other areas of FL. While some people predict the chance of a housing slowdown this year, the data has yet to be revealed if this will remain true.
Florida continues to dominate the rental industry compared with other larger cities in the USA. Year after year, investing clubs, corporations and single investors buy and sell houses in all of the 67 counties.
In order to properly plan a successful investment portfolio, locating and analyzing accurate data is essential. Real Advisors updates this blog often to reflect market data that might be outdated since the original posting.