Fla. Realtors predict Florida home prices will rise around 5% in the next year.
According to the latest Realtors Confidence Index, Florida’s realtors predict a price increase in single-family homes. In the survey of more than 50,000 practitioners, most said they feel “strongly” confident that the single-family home market will perform better over the next six months than it did a year ago.
Compared to other states, Realtors in the Sunshine State have the highest expectations for home price increases. The survey indicated that low interest rates as well as a stronger economy due to job growth are increasing demand of homes.
However according to the report, “Realtors expect the recent strong price growth to moderate as rising prices have made homes unaffordable for many, with home prices almost on par with their levels prior to the housing downturn.” Across the nation, Realtors predict house prices will raise about 3.2 percent over the coming twelve months.
Home prices are climbing to the point we saw before the economic turn-down and recession. In August, the median price of all existing homes was $230,200, very close to the peak price of $230,900 from July 2006.
Florida is the only state where realtors predicted price increases of more than 5 percent. They said that in the next year, they think Florida home prices will rise somewhere between 5 and six percent. Only three other states even said that they foresaw a home price increase of between 4 and 5 percent. Realtors predict a 3-4 percent increase in 19 states, and 2-3 percent increase in 27 states.
The survey also asked respondents what challenges they foresee in the next twelve months. According to the report, the top responses include tight inventory, decreasing affordability, tight mortgage availability, and slow, excessively conservative appraisals. Some respondents pointed out worries regarding the challenge of obtaining financing specifically for condo purchases which many are not eligible for FHA, Fannie Mae or Freddie Mac loans.
Overall, the Sunshine State’s outlook on the real estate market is positive. Price increases make this a great time to sell your home. If you have any questions about buying or selling a home in Miami, contact us at RE/MAX Paradise today!