In July 2016, Florida’s housing market saw a rise in the median home price, while the actual volume of sales dipped by a significant 8% compared to July 2015, although a portion of this dip could be attributed to the fact that July 2016 had two fewer business days during which to record home sales. Even so, this trend is important for real estate investors, many of whom favor the Florida real estate market for purchase of distressed properties and short sales. In today’s article from The Short Sale Gal Kristine Zelazo, we’ll take a more in-depth look at the latest real estate market stats — key information for real estate investors.
FLORIDA REAL ESTATE MARKET CONDITIONS REFLECT NATIONAL MARKET CONDITIONS
July 2016 saw just over 24,000 closed sales of single-family homes across the state.The statewide median sales price for single-family homes was $223,238, reflecting a 11.6% increase over the prior year. The statewide median price for Florida town homes and condominiums was $160,000, reflecting an increase of 6.8% over the prior year’s figure.
The typical Florida home seller actually got, on average, 96.4% of their original listing price. Sellers listing a town home or condo received, on average, 94.6% of their asking price.
Florida Realtors® President Matey H. Veissi explained, “Florida’s supply of for-sale homes remains tight, which is putting pressure on median prices and having a dampening effect on closed sales…But the state’s strong jobs outlook and growing economy are attracting more and more new residents, which provides a solid foundation for the housing market. Florida businesses created 26,500 jobs in July and our population is growing by more than 1,000 new residents each day, according to recent economic reports.”
This is good news and bad news for real estate investors. More new residents and job growth means more competition for properties, which can drive up prices, but it also means that your pool of potential buyers and renters is larger.
Florida Realtors® Chief Economist Brad O’Connor added, “Florida continues to suffer from a drought in the supply of affordable housing for sale, resulting from the gradual exhaustion of the state’s inventory of distressed properties and the lack of new construction in these price ranges. The same story is largely playing out in the markets for condos and townhouses.”
According to figures released by lender Freddie Mac, the interest rate for a 30-year fixed-rate mortgage averaged 3.44% in July, reflecting a major dip when compared to the 4.05% average from one year prior.
WHAT DO THE CURRENT FLORIDA REAL ESTATE MARKET CONDITIONS MEAN FOR INVESTORS?
The trends that are playing out in Florida seem to be fairly representative of what’s happening on a national level, which is mixed news for investors. Traditionally, job growth means a stronger economy, which translates into fewer distressed properties. This results in higher prices. But this also means that properties tend to sell or rent for a higher price than they would have in weaker economic conditions.
The shrinking housing supply isn’t great news for investors who are seeking to buy, but for investors who have a number of existing holdings or fix and flips, the time will soon be ripe for selling or renting. Assuming the current trends continue, now is the time to buy, before prices and interest rates rise and before real estate inventory drops.
Ready to Get Started in Real Estate Investing?
If you’re getting started in real estate, consider working with a real estate investing mentor like The Short Sale Gal, Kristine Zelazo. Getting started in real estate investing can be somewhat challenging, but when done right, you can stand to make significant profits. You’ll have lots of advantages in this regard when you work with a real estate investing and short sale expert like Kristine Zelazo, better known as The Short Sale Gal.
Based in Florida, Kristine works with both buyers and sellers and she is an experienced negotiator. So if you’re an investor seeking to get started in buying short sales and need a great mentor or wish to pursue a short sale transaction for the sale of your property, turn to Kristine Zelazo, the Short Sale Gal!
To get started with selling your home, simply complete the home pre-sale form to provide Kristine with additional information on the property in question. Then, call 786.570.0360.