The Florida real estate market has always been under the spotlight for both national and international property buyers. With 2019 just around the corner, real estate investors and homebuyers are having a conversation about moving to Florida, and many have started taking the first steps to do so!
To help you make safer investment choices and ultimately having predictable investment expectations, we’ve put the Florida real estate market under the spotlight once more and carefully analyzed the behavior of Florida’s real estate market since the market crash in 2008. So, are the Florida real estate market trends of 2019 indicating a flow of residential property buyers or are we looking at a stagnant real estate market?
Factors That Affect Every US Real Estate Market
These three ingredients made up for an upward trending arrow for the Florida real estate market in 2017 and 2018, and they will undoubtedly do the same for 2019. Let’s take a look at each of these factors to better understand how they are driving the Florida real estate market for the better.
As for the case of the entire US housing market, the Florida real estate market is affected by the state’s population growth. Florida is the 3rd most populous state after California and Texas. All of these states have rising real estate markets that are driven by the large population growth. With 21.31 million residents, the population demands housing and creates real estate market opportunities.
As for the Florida housing market 2019 and 2020, if the population growth of approximately 1.8% continues at the same rate, we’re going to witness the state’s population exceed 22 million. The population growth on its own is a key indicator of the housing and real estate needs of this real estate market.
Real estate market trends are tremendously affected by each state’s economy. Most notably is Florida’s record-breaking tourism sector which has boosted its overall economy. The state’s economy hit the $1 trillion mark in 2018. This is a positive indication of the effect the economy will have on the Florida housing market in 2019.
Digging into Florida’s economic stats, we find that Florida has the 4th largest economy respectively after California, Texas, and New York. Of course, this economic growth has a direct effect on the Florida real estate market and the employment rates, which brings us to our next point.
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Florida’s Jobs and Unemployment
Once more, Florida makes it into the top 10 states for job growth. As Florida’s economy continues to fuel job growth from year to year, the Florida housing market responds at a fast pace. The above national average job growth is attracting millennials and families from across the country which automatically increases the population. To compare, Florida’s job growth of 1.3% exceeds the national average of 1.2%.
This outstanding job growth rate is going to continue increasing in 2019 with the possibility of reaching stability in 2020 and 2021.
Characteristics of the Florida Real Estate Market in 2019
Strong Economical Factors for Florida Real Estate Investors
The previously mentioned economic factors played a major role in the housing market in Florida 2018 and will continue to do so in 2019 as well. When going for a Florida real estate investment, any investor must look at the economies of the housing market. Moreover, real estate investors are zooming in on microeconomies within Florida’s economy to find the most vibrant location to invest in real estate.
Accordingly, while examining Florida’s real estate market in 2016, 2017, and 2018, real estate investors can evaluate the accumulative unemployment rate and overall population in order to make the best real estate investment decision that they possibly could. Of course, the strong economic system differs between each local real estate market. Let’s take North Palm Beach which has an unemployment rate of 4.8% or Jacksonville Beach with a low unemployment rate of 4.5%. These cities are offering some of the lowest unemployment rates in the state and the housing market in Florida will keep reflecting that in 2019.
Meanwhile, real estate investing in Florida continues as the need for housing rises with migration, property construction, and income raises.
If you’re following real estate market trends in Florida and looking for the best investment property location, read this blog post: Best Places to Invest in Real Estate in 2018 in Jacksonville.
If Jacksonville is not your go-to city for real estate investing in Florida, start looking for and analyzing the best investment properties in any city and neighborhood of choice by clicking here.
Stability in the Housing Market
The housing market in Florida 2018 has had a great year. The sales numbers for single-family homes have increased in addition to the median sales price. Moreover, the housing market is becoming more and more catered to the upper-middle class as the inventory of single-family homes under the price tier of $200,000 is decreasing. This shortage indicates that real estate developers and investors are focusing on luxury properties.
As for the case of any of the 50 states, the thriving economy can stabilize any off-the-chart real estate market trends. Let’s take the Miami housing market as an example. According to Zillow.com, the median listing price in Miami is $299,900 while the median sales price is $238,400. The same situation is almost identical in the Keys, Fort Lauderdale, and even Tampa. This housing market trend for Florida 2019 is not alarming as it’s only natural in the current circumstances of a growing economy.
Looking for investment properties in Miami? Read this blog post: Miami Real Estate Market 2018: Why and Where to Invest.
Foreign Real Estate Investors
Florida has been an attraction for international homebuyers for years. With Florida’s real estate market becoming more of an international destination for real estate, Florida is becoming a hub for foreign money as they view real estate investing in South Florida as lucrative and strong just as much as its counterparts in Los Angeles and New York State. Accordingly, the major selling point for this real estate market with foreign investors is its affordability when compared to other internationally-dominant US real estate markets.
With South Florida real estate, Canadian real estate investors are taking a large chunk of international investment in the area. This can be mainly attributed to the many Canadian companies opening branches in the Tri-county area in South Florida.
According to data from the National Association of Realtors, foreign investments in residential real estate properties in South Florida is made up of 46% of Latin American and Caribbean real estate investors.
As for the housing market predictions 2019 in Florida, foreign investors and their impact on the market may shift if President Trump imposes taxes on Canadian companies in the United States. Additionally, the fact that foreign investors’ interest in any city is strictly financial as they look at the return on investment of everything is an alarming trend. These foreign investors can just as easily shift to another state.
Strong Commercial Real Estate Market
The strong commercial real estate market is one that Florida parades with pride. The market indicates a positive growth in 2019 for CRE, and here is why:
- Business growth in the area
- Retail growth
- No personal income tax making it the 4th best tax climate in the US
Related: Why Switching to Commercial Real Estate Investing Is Smart
In any case, the Florida real estate market has a strong commercial real estate presence. This will continue growing in 2019 and 2020 if the political climate and foreign trade relations continue as is.
Is the Florida Real Estate Market 2019 a Buyer’s Market or a Seller’s Market?
There are plenty of reasons to invest in heavenly Florida; the heat showed no signs of slowing down in 2018, and most likely won’t in 2019, whether we’re talking about the climate, the tax incentives, or retirement. The constant growth hasn’t stopped the Florida real estate market from remaining a buyer’s market. With real estate investing is in its prime, many Florida real estate investors are taking advantage of this market. It’s no surprise then that many Florida cities are considered top markets for 2019. Keep in mind that a real estate market analysis is a must even in such a valuable and growing economy.
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What are some of your Florida real estate market predictions for 2019? Will you be investing in this state next year?