How to Learn Where Florida Real Estate Prices are Heading Before You Buy or Sell
Thinking of selling your home in the state you now live so you can buy a home or condo in Florida? If so, knowing exactly where the Florida real estate market is now, and where it’s heading is extremely important. Why? There are many reasons, but here’s just a couple:
- About 30,000+- people move into, and out of Florida every month. Changes in the number of people moving in compared to people moving out can cause wild swings in Florida home and condo prices.
- It’s not common for Florida real estate prices to rise steeper and faster during booms and then fall quicker and farther than in most other states.
- Studies show a very high percentage of people who relocate to Florida will eventually decide their relocation was a mistake and want to move out of the state.
Why is This Important?
Because Too Many People Have Moved to Florida During Good Economic Times, Paid Too Much for Their Home, and Then Had to Sell at a Loss When Their “Florida Dream” Didn’t Pan Out and They Wanted to Leave.
When a higher number of people are moving to Florida, it’s easy to pay too much for a home during a strong sellers market when prices are high. If you later decide that moving to Florida was a mistake and you want to sell and move out of Florida, you may find yourself in a strong buyer’s market when Florida real estate prices are low. This can lead to a large financial loss. Florida real estate prices dropped an average of 60% during the last recession. Yes, the person who bought a $340,000 home purchased just before the last downturn, ended up with an “investment” that was worth only roughly $136,000 afterwords. Read further and I’ll explain how you can move to Florida and avoid this devastating trap.
However, if you move to Florida and buy a home when prices are low during a strong buyers market, then later want to sell and move out when prices are climbing steeply during a strong seller’s market, you could stand to earn a large profit. If moving to Florida turns out to be a mistake (over 12 million+ have already moved out) because it wasn’t what you expected, how bad could you feel if you got to leave Florida with $150,000 more cash in your pocket than you moved to Florida with? Best mistake you ever made, right? That’s why it’s extremely important to move to Florida the right way, just in case.
The 3 Common Florida Real Estate Markets and Which Ones Are Best to Buy or Sell In
1) A Balanced Florida Real Estate Market
A balanced real estate market is where both the supply and demand for homes and condos in a particular area is roughly equal. In a balanced real estate market there is about a six month supply of homes on the market.
A balanced real estate market is not something that usually happens for a long period of time in Florida. It’s usually just a threshold that is passed as Florida is transitioning from a buyer’s market to a seller’s market or vice-versa. The odds are that you will not likely move to Florida when it’s a balanced market.
2) A Florida Buyer’s Market
A buyers market in Florida happens when there are more people who what to sell (often to leave the state) than there are people who want to buy. During a buyer’s market in Florida there will be more than a six month supply of homes for sale. This means there will usually be a lot of homes to chose from in your price range.
Because the supply of homes exceeds the demand for them in a Florida buyer’s market, buyers can take their time when shopping for a home because homes will sit on the market for many months, possibly a year or longer without selling. Buyers may not want to be too eager to make an offer because sellers will often reduce their prices. Even if they don’t drop the price, more sellers are willing to entertain low offers because they have no idea how long it may be until the next offer comes along, if at all. And that offer may even be lower.
“The best time to buy in Florida is during one of the many frequent buyer’s market’s, when homes and condos are selling at steep discounts of 30% or more”
In a strong buyers market, you will notice more for sale signs appearing on more homes every week. Those new listings may also be priced lower than existing for-sale homes in the area thereby pressuring those older sellers to reduce their price in order to compete. Buyer’s markets can be lots of fun for buyers but not much for sellers and real estate brokers. The best time to buy in Florida is during one of the many frequent buyer’s market’s, when homes and condos are selling at steep discounts of 30% or more and there’s more homes coming on the market every day.
3) A Florida Sellers Market
A seller’s market is when there are more buyers looking for homes and condos in an area than there are properties for sale. When this happens, sellers can expect to sell their home in less that six months. In a strong seller’s market a nice home may sell within weeks, days or even hours.
When there are more buyers than available homes, prices go up. In Florida, it’s not uncommon for demand to far outstrip the supply of homes for sale and push list prices skyward. During a strong seller’s market you may notice fewer for sale signs in the front yard of homes every week.
Seller’s markets are not fun for buyers. Prices are high. There is less inventory to chose from. Buyers may feel pressured to buy now because if they don’t prices may even be higher next month. During strong seller’s markets, many buyers may end up paying far more than they want for a home they really don’t like very much, simply because they believe it will be even worse if they don’t act now.
“When inventories get low and prices shoot up fast, this can be the worst time for a buyer to make a purchase in Florida because a real estate bubble may be forming. This is where I see the Florida real estate today”
Strong Seller’s markets are fun for sellers, real estate agents that can still successfully compete for listings as inventory gets scarce, flippers (investors that buy homes, do no or minimal improvements, then jack up price and put it right back on the market) and new construction builders. When inventories get low and prices shoot up fast, this can be the worst time for a buyer to make a purchase in Florida because you may be buying in a real estate bubble right before it is about to pop. This is where I see the Florida real estate today. In bubble territory, right before it pops.
How to Learn Where Florida home Prices are Heading in a Specific City or Town
- Go to Realtor.com
- Put in the name of the city you are interested in knowing where home prices are heading, and hit enter.
- A page of listings will appear. Scroll down past the listings until you see Facts about “the city you entered on the previous screen”
- You will see a Median list price for the city, and an arrow pointing up or down. This indicates if home prices are currently heading up, or down, in that particular Florida city.
- You will also see Median Days In Market and an arrow. If the arrow is pointing down, prices will likely be rising in the future because homes are selling quicker and vice versa.
- You will also see Active Listings and an arrow. If the arrow is pointing down, this is another indication that prices will likely rise in the future. This is because the number of homes for sale is decreasing and vise versa.
Ron Stack “That Best Places Guy”
- Want to be certain if moving to Florida is right for you or your family? You’ll know after reading the Florida Move Guide.