All year long we have been watching the real estate market heat up in Florida. There are many reasons why we are seeing a different resurgence this year! A few of the key catalysts are: the Florida Legislature, interest rates and PMI insurance reductions. Each of these played a high valued role in the 2015 housing market. Combining all three, we can see housing is more affordable and there are a lot more people looking for housing!
Florida Governor Rick Scott is very enthusiastic about the housing market citing this past month as another remarkable one for the state. He is particularly proud of his tax cuts, saying “our work to cut taxes and create a business friendly environment is creating jobs and attracting more families to Florida because there are so many opportunities for success.” The team at SI Real Estate could not agree more. We have been helping families relocate to the Tampa area all year long, and know many more families are relocating this year, more so than a typical calendar year at our Brokerage.
More families are looking for homes to buy due to the sheer population difference from 2014. It is no secret Florida surpassed New York as the third most populous state due to 250,000 new residents who moved here in 2014. Scott is proud and welcoming of the new additions to our Florida family! No doubt that all of the relocations have helped spur the housing market to new heights. The supply of homes available to purchase, and to rent had a tough time keeping up with the new demand, sending pricing up on both homes for sale and rentals. When supply is low, prices jump up and properties move a lot faster.
Interest rates have stayed low all year and PMI reductions are helping more people become buyers. This has led to record setting housing statistics seemingly every month. In August, a historically slow month for home sales, pending home sales rose 2% and time spent on the market dropped 19%. This month, the average single family home price rose to $199,000, up 12% from 2014. Condos and townhouses also saw a spike, 11% higher sales average. This is the 44th straight month that Florida home prices have gone up, 50th in a row for townhouses and condos. Clearly the real estate upward trend is here to stay.
Our agents here at SI Real Estate are informing our clients that now is the time to buy, before Real Estate prices come all the way back. If you haven’t thought about buying yet, it is time to get serious and make a move! There are many properties still on the market that are affordably priced, more so than equivalent rentals. Why rent at $1400 a month when you can own the same property for $1200? Makes no sense if you can qualify for a mortgage. 2015 may be the last year interest rates and home prices will remain this incredibly attractive. Stop waiting and missing out!