Florida budget housing values are up 12%, says Florida Realtors.
Single-family home prices in the Sunshine State are rising at different rates, with budget priced properties increasing faster, says Chief Economist Dr. Brad O’Connor.
He told the 2019 Florida Real Estate Trends conference, “We’re finding that different price tiers are definitely appreciating at different rates. The range up to $200,000 is up almost 12 percent (in price growth), while the range of $600,000 and over has less growth. There’s a lack of affordable housing supply in the lower price tier, while the upper levels are almost a balanced market.”
Florida has done better than the Untied States for real estate capital growth over the past five years. It and ended 2018 with an annual job growth rate of 3.3%, which is 1.4% higher than the national average.
Lack of new housing supply is constraining the market and more construction is needed. However, construction is hampered by a shortage of skilled workers, rising cost of materials, lack of suitable land and more.
But there was good news for Florida’s housing market. Active inventory at the end of 2018 was up compared to the end of 2017.
It’s up 13.3% for existing single-family homes and up 8% for condo-townhouse properties. “And, it’s notable that the $200,000 to $300,000 price tier of housing inventory is up, which is the sweet spot for millennials. Despite the fact that we have slightly higher inventory, closed sales are also still rising (with the exception of December’s data). Rising inventory is, so far, a good thing.”
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