Despite concerns over flood insurance rate premiums, real estate experts believe that Florida’s housing market is going to be the one to keep an eye on this next year. A new report predicts that Florida will edge out other recovering markets to regain the national title again in 2014.
According to the Home Buying Institute, the inventory of available properties in many of Florida’s most sought after locations is dropping fast. Combine that with a steadily growing rate of demand for properties statewide, and you have a formula predicted to drive this market to the top over the next year.
“Just like the last decade, Florida is the market to watch,” explained Jack McCabe, a real estate consultant here in Florida. “During the last boom-bust cycle, what happened in Florida first spread through the rest of the country. It was the tip of the iceberg and will be again.”
Robust Demand for Florida Homes
Reports coming in have shown strong home sales through the end of September. Realtors in several counties around Florida topped out at above 18,000 single-family homes and condominiums sold through the end of September (18 percent higher than the previous year).
This healthy growth in demand has started to push up the median price for Florida homes by 18 percent over the last year to $199,000 last month. At the same time, the inventory of available homes for sale was reduced to just a 4.4 month supply of listings.
The Institute for New Home Buyers
The Home Buying Institute, a group based out of Carlsbad, CA and orchestrated by Brandon and Melissa Cornett, works to educate potential buyers about smart purchasing habits in residential real estate. The institute predicts that prices will continue to build in the majority of U.S. metropolitan areas, especially those found in the Sunshine State.
The group is also fairly certain that the number of real estate investors in the market will continue to decrease over the course of 2014. Foreign investors have been very active in the Florida market over the last couple years, which has created some problems for potential first-time home buyers in the area. This predicted exodus should help them secure the homes they want.
Florida Market Becomes Important Indicator Once Again
Predicted mortgage interest rates are expected to top out above 5 percent in the next year as well. This scenario could create some problems for several housing markets around the United States, but the impact should not be as significant here in Florida. That assertion is based on a recent report which suggests more Floridian homebuyers are using cash for their purchases.
In the end, the Home Buying Institute expects that the 2014 Florida housing market will still favor sellers over home buyers. The economic trends in the state could once again play an important role for the entire nation.
“Florida is once again going to be a very good indicator,” McCabe said.