All we hear from our realtor friends is that there is a huge shortage of houses for sale. We
are told that houses are typically selling within a few days of when they hit the market. How does that affect the overall market? Refer the following information from MashVisor September 8th, 2019.
Tight Inventory Supports Signs of a Seller’s Market
This is a national trend- the number of active real estate listings just isn’t enough to match buyer demand. Despite efforts of increasing inventory levels, most US cities are still struggling to have enough housing stock. This is apparent as house prices in July went up 5 percent which means affordability is also dropping. Properties priced below $200,000 are selling a lot faster than luxury homes (30 days faster). Although a hot real estate market is good because it means it’s active, the pressure on prices and the high demand could be signs of a possible housing market crash. But US housing market experts believe that, while a recession is bound to hit us sometime in the future, our strong economy and low interest rates are keeping us away from a national housing market bubble.
Focus on Florida
So what do these national trends say about Florida housing market predictions? Well, the Florida real estate market is looking very healthy. We’re seeing consistent growth in sales, prices, and real estate transactions. Still, inventory trends are following national trends. New listings of single-family homes went down 2.2 percent this year with 96,984 new units on the market. Condo listings dropped double that by 4.5 percent with only 39,618 units. New home listings are expected to continue dropping throughout 2020.
Although the number of Florida investment properties for sale isn’t rising, home sales still are. Single-family home sales in the Florida housing market had a YoY increase of 4.6 percent, with a total sales volume of 85,017. Condo sales increased from Q1 2019 to Q2 2019 with a total of 34,128 condos and townhomes sold. However, this is a 1.4 percent drop in volume from last year.
Although these Florida real estate market trends don’t signal a buyer’s market, it doesn’t mean you can’t invest in Florida real estate. Quite the contrary. Taking a look at some key return on investment trends shows us that you can make some lucrative investments in the Florida housing market 2020.
Related: Searching for Property in a Low-Inventory Real Estate Market: 6 Tips
The Florida Real Estate Market Forecast 2020 Is Looking Positive
The best way to form reliable Florida housing market predictions is to look at the numbers. We’ll give you stats on rental property performance in the Florida housing market, but remember that these are state-level numbers. Performance of a real estate investment can differ from city to city and even neighborhood to neighborhood. We’ll give you a list of the top-performing cities at the end of this blog, but for now, let’s take a look at the Florida housing market forecast 2020:
Median Property Price: $432,690
Price per Square Foot: $250
Price to Rent Ratio: 20
Average Days on Market: 125
Monthly Traditional Rental Income: $1,816
Traditional Cash on Cash Return: 1.4%
Monthly Airbnb Rental Income: $2,763
Airbnb Cash on Cash Return: 3.3%
Airbnb Occupancy Rate: 55%
Future rental property performance in the state is looking good- all numbers point to a profitable real estate investment in 2020.
Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net or call at 727 447-2418.