Florida Home Prices Soaring
Home prices have been rising all across the country, but some markets have seen larger increases than others. Florida is one of those markets that is leading the nation in terms of rising home prices. Two of the top three markets over the past year in terms of increasing home prices were all in Florida. Tampa and Miami were ranked two and three in terms of price increases in the entire country. Home buyers have been flocking to Miami and Tampa. Mortgage rates have been near historic lows and Florida home buyers have been taking advantage of them. What do rising home prices mean for Florida home buyers? What can Florida home buyers expect from mortgage rates? If you’re a Florida home buyer or homeowner and want the answers to these questions, the team at Peoples Choice Mortgage is here to help.
Home Buyers are Moving to Florida
Over the past few decades, Americans have been moving around the country. For the most part, many are leaving the colder portions of the nation and moving toward the South. Again, this is nothing new. Florida has always been known for being a lifeline for snowbirds in the winter. People tired of midwest and northwestern winters can hop on a flight and enjoy Florida beaches. However, these trends only accelerated because of the pandemic. The pandemic changed the way many of us lived and how we evaluated what we wanted out of our home. As a result, many chose to move to find more of what they were looking for. Several of the most popular pandemic destinations are in Florida.
So, why Florida? Why did the pandemic prove to be such a great time for people to move to the Sunshine State? One reason why the pandemic proved to be such an incentive was because of mortgage rates. Florida is always a popular destination for homeowners, but when you make mortgage rates so affordable, that only increases home buyer demand.
The second reason why the pandemic accelerated buying pressure in Floirda was because of lifestyle. Florida was one of the main states to eschew pandemic protections. While many states shut down, Florida definitely stayed open, which turned out to be a clarion call for those with similar sentiments. Furthermore, in Florida, home buyers can get more house for their buck than back home in California or New York. The pandemic made us all value having extra space in our homes and taking advantage of being outside. Florida allows homeowners to do all of this.
Florida Home Buyers are Making Choices due to Home Prices
Home buyer demand is through the roof, but home availability is limited. This has created a perfect recipe for rising home prices in Florida. As a result, condos are becoming more and more popular. Single-family home prices increased 15.9 percent from one year ago and 34.9 percent from two years ago. Condo prices increased 14.6% from one year and 22.7% from two years ago. These are national trends and are only more exaggerated here in Florida. One reason for that is that condo living is loved and sought after in this state. Many residents love the amenities provided by the condo complexes. Additionally, many units are close to the water, which is something everyone wants when they move down here to the coast. Home buyers are adapting to today’s market. Even if single-family homes are not available, they will do the next best thing, which is buy a condo.
Final Thoughts
Take it from Senior Loan Officer, Shawn Hendricks Jr., who is helping lead the Peoples Choice Mortgage team in Florida … demand in Florida is going nowhere. Between the fun and the sun, Florida will always be a destination for home buyers. That means that Florida home buyers should prepare for competition, especially if we see any stability in mortgage rates. Florida is always a popular destination, but it is even more so when it is affordable. If you are interested in buying a house in Florida, but want some extra help, contact us. We will help you find the home of your dream, no matter what the market has in store for you.
