Florida Home Values Skyrocket
The national median home price is twice what it was ten years ago. Molded by a storm of inflation, tight supply and surging demand, the average home price in the U.S. went from around $200,000 to $400,000, according to a new study from Point2.
However, in Florida, it took much less than a decade for home prices to achieve a twofold increase.
Average home values across Florida have undergone a seismic transformation, doubling in value within the short span of just six years. This surge, saw Miami’s average home price soar from around $290,000 in 2018 to the current median of $583,000. In Tampa, homes went from $213,500 in 2018 to $430,000.
For their study, analysts looked at historical data to calculate how many years it took for home prices in the 100 largest U.S. cities to double — and Tampa tied with Miami for having the third fastest price doubling among the country’s largest cities.
The trend of rapid price doubling extended to other big Florida cities, with home prices in St. Petersburg, Orlando and Jacksonville, increasing twofold in the past six to eight years.
Median home prices in St. Petersburg doubled within 6.6 years. In Orlando home prices doubled within 7.5 years — and in Jacksonville it took 7.9 years to see a twofold increase.
The research notes that, “Fluctuating mortgage rates, steep property prices, or supply deficits are no new challenges. But they have never unleashed such a rapid-fire onslaught on homebuyers in the U.S. as they have in today’s housing market.”
Among the top 10 states attracting new construction buyers, Florida draws significant attention, with approximately one in every eight new construction buyers opting to purchase their homes in the Sunshine State. In November, the U.S. Census Bureau reported that for the year, more than 1.5 million new residential construction projects broke ground across the state — a 9.3% increase from the year prior. (Florida Realtors).
According to my research, Naples was a little closer to the national average, taking around 8 years for prices to double :
- Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
Andrew.Oliver@Compass.com - AndrewOliverRealtor.com
m 617.834.8205
Licensed in Florida and Massachusetts
BAY FOREST Condo Open House TODAY 1:00 -3:30 PM
Bay Forest has long been a popular community West of 41, between Wiggins Pass and Bonita Beach Road.
The exciting news is that construction of the new $4.5 million Boardwalk has begun. (The seller will pay the final assessment)
Go HERE to see the video and photos for 15405 Cedarwood Ln, 101:
15405 Cedarwood Ln, Unit 101: 2 bed +Den, 2 bath, 1377 Sq Ft: now $370,000
(Bermuda Bay 1)
Open House Sunday: 1:00 – 3:30 PM
Go HERE to view the Bay Forest website, read the latest Newsletter, and watch the 4-minute video of Bay Forest.
Go HERE to see the video and photos for 325 Carinosa Court;
325 Carinosa Court: 3 bed +Den, 3 bath, 2066 Sq Ft: $725,000 UNDER CONTRACT
Contact me for a private showing:
- Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
Andrew.Oliver@Compass.com - AndrewOliverRealtor.com
m 617.834.8205
Licensed in Florida and Massachusetts
8 new Property Insurance Companies approved to enter Florida market
Following historic legislative reforms designed to promote market stability, eight property and casualty insurers were approved to enter Florida’s insurance market. Ovation Home Insurance Exchange, the most recent approval, joins Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Company, Orion180 Insurance Company, Mainsail Insurance Company, and Tailrow Insurance Companies as newly approved property and casualty insurers.
“Florida’s insurance market continues to strengthen, showing signs recent legislation is having positive impacts to the property insurance market,” said Insurance Commissioner Michael Yaworsky. “OIR remains steadfast in our efforts to stabilize Florida’s insurance market by implementing legislative reforms and recruiting more insurers to the state. We look forward to continuing this work and promoting a competitive market for policyholders.”
In addition to new companies entering the market, OIR approved the acquisition of Florida domestic property and casualty reciprocal insurer, Trusted Resource Underwriters Exchange, to allow the existing company to grow its footprint in the state and expand its underwriting capacity. As a result of OIR’s approval of the acquisition, more than $1.25 billion of capital is being invested into Florida’s property and casualty insurance market.
Citizens Property Insurance Corporation
Citizens Property Insurance Corporation (Citizens) is showing improvement in their financial strength over the previous years. For instance, Citizens’ surplus increased by approximately 17.5 percent from previous years and Citizens posted a net income in 2023 of $746 million compared to a loss of $2.2 billion in 2022. Additionally, Citizens’ combined ratio improved from the previous year from 204.4 percent to 59.5 percent.
As the market continues to stabilize, OIR is seeing a continued interest from authorized insurers in the Citizens Depopulation program. In 2024, OIR has approved 13 companies to assume more than 354,000 policies from Citizens. In 2023, more than 275,000 policies were assumed from Citizens, reducing Citizen’s exposure by more than $113 billion.
Florida Domestic Company Strength (more…)
Mid-April Is Prime Time for Sales
Sellers nationwide will likely see the best conditions for listing prices, buyer demand and sales pace from April 14 to April 20, making it the best time to sell, Realtor.com said.
Realtor.com detailed why the April time period is the best time to sell:
Above-average prices – The prices of homes listed during this week have historically been 1.1% higher than the average week and are typically 10.4% higher than at the start of the year. If 2024 follows last year’s seasonal trend, the national median listing price could be $7,400 higher than the average week, and $34,000 more than at the start of the year.
Above-average buyer demand – The more buyers looking at homes, the better it is for offers and sales. Historically, this week saw 18.4% more views per listing than the typical week, but in 2023 this week got 22.8% more views per listing than the average week during the year. Demand will in part depend on mortgage rates – falling rates may increase spring demand, while steady or rising rates may prompt some buyers to hold off.
Faster market pace – Thanks to above-average demand, homes tend to sell more quickly during this week. Historically, homes actively for sale during the week of April 14 sold 17%, or about 9 days, faster than in the average week. In 2023, this week typically saw homes on the market for 46 days on average, 6 days faster than the year’s average. With inventory levels remaining low, sales may happen more quickly as buyers compete for fewer properties.
Less competition from other sellers – With past seasonal trends likely to persist, there would be 13.7% fewer sellers in the market this week compared to the average week during the year. Active inventory was 14.8% higher in February versus last February, but still 39.7% lower than pre-pandemic levels. This gap means there will continue to be opportunities for sellers entering the market this spring.
Below-average price reductions – Price reductions tend to be lowest in late winter and early spring as buyer activity ramps up. Historically, about 24.6% fewer homes have had a price decrease this week compared to the average week of the year. In 2023, this week saw about 8,000 fewer listings with price reductions compared to the average week of the year. (Realtor.com)
Check out my websites for more real estate related news and reports:
www.OliverReportsFL.com
www.OliverReportsMA.com
BAY FOREST OPEN HOUSES
I am hosting two Open Houses in Bay Forest this weekend. Bay Forest has long been a popular community West of 41, between Wiggins Pass and Bonita Beach Road.
The exciting news is that construction of the new $4.5 million Boardwalk has begun. (The sellers of both these properties will pay the final assessment) (more…)
BAY FOREST CONDO – GROUND FLOOR END UNIT-OPEN HOUSE TODAY 1-4 PM
Location: West of Hwy 41 on Vanderbilt Drive, N Naples Welcome to your coastal retreat in the serene community of Bay Forest! This ground floor end unit in Bermuda Bay 1 – 15405 Cedarwood Ln, unit 101 -offers convenience and tranquility. With 2 bedrooms plus a den and 2 bathrooms, this home is perfect for those seeking comfort and space. The private courtyard and direct access from the deeded carport make everyday living a breeze – no more lugging groceries through parking lots! New tile roof (2021), brand new A/C, boardwalk construction about to start (seller will pay assessment). (more…)
PELICAN BAY 2023 MARKET REPORT and 5-YEAR REVIEW
Click PELICAN BAY 2023 MARKET REPORT and 5-YEAR REVIEW to download a copy of this report.
Median Price and Sales
The median price of the Single Family homes sold in Pelican Bay more than doubled from just $1.8 million in 2019 to $3.9 million in 2023.
Sales increased from 2019 to 2021 and have since dropped back below pre-pandemic levels. The last SF sale in Pelican Bay was in September 2023.
The median price of the Villas sold in Pelican Bay almost doubled from $1.1 million in 2019 to $2.1 million in 2023.
The number of sales increased in 2020/21, but has since dropped back to pre-pandemic numbers.
The median price of the Condos sold in Pelican increased 45% from $860,000 in 2019 to $1.25 million in 2023. Sales doubled from 2019 to 2021, and have since returned to 2019 levels.
Single Family Sales by Price
Another way to look at sales is the distribution by price. In 2019, 73% of Single Family sales were under $3 million and by 2023 that had dropped to just 11%. Conversely, the share of sales over $3 million went from 27% to 89% in the same period. (more…)
BAY FOREST 2023 MARKET REPORT and 5-YEAR REVIEW
Click BAY FOREST 2023 MARKET REPORT and 5-YEAR REVIEW to download a copy of this report.
Median Price and Sales
The median price of the properties sold in Bay Forest increased 77% from $268,000 in 2019 to $475,000 in 2023. Sales doubled between 2019 and 2021, and dropped back again in 2022 and 2023.
Sales by Price
Another way to look at sales is the distribution by price. In 2019, 74% of sales were under $300,000 and there were none under $300,000 in 2022 and 2023. Conversely, the share of sales over $500,000 went from zero to 44%
Bay Forest sees a small number of sales each year at quite a wide range of price: in 2023, from $320,000 to $790,000.
The combination of small number of sales and wide range of prices can make median prices less reliable as a guide to the overall market in Bay Forest. (more…)
IMPERIAL GOLF ESTATES 2023 MARKET REPORT and 5-YEAR REVIEW
Click IMPERIAL GOLF ESTATES 2023 MARKET REPORT and 5_YEAR REVIEW to download a copy of this report.
Median Price and Sales
The median price of the Single Family homes sold in Imperial Golf Estates more than doubled from $515,000 in 2019 to $1.1 million in 2023. Sales increased modestly until Q3 2021, and then dropped sharply to below pre-pandemic levels in 2022 and 2023
The median price of Villas (attached and detached) sold increased 65% from $315,000 in 2019 to $519,000 in 2023. The number of sales is quite small and shows some fluctuations during these years.
The median price of Condos (and Townhouses) increased 62% from $222,000 in 2019 to $360,500 in 2023, a small declined from the 2022 level. Sales in 2022 and 2023 dropped back to their pre-pandemic level.
Single Family Sales by Price
Another way to look at sales is the distribution by price. (more…)
PELICAN MARSH 2023 MARKET REPORT and 5-YEAR REVIEW
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO). Median numbers are used in all calculations.
Click PELICAN MARSH 2023 MARKET REPORT and 5-YEAR REVIEW to download a copy of this report.
If you are thinking of selling, please contact me for a current market analysis for your property. With little supply, and the prospect of lower interest rates in 2024, this could be a good time to sell.
Median Price and Sales
The median price of the Single Family homes sold in Pelican Marsh more than doubled from $825,000 in 2019 to $2.2 million in 2023. Sales surged until around Q3 2021, thereafter returning to pre-pandemic levels and below.
The median price of the Condos sold increased by 74% from $419,000 in 2019 to $775,000 in 2022, before easing to $730,000 in 2023. Sales following a similar pattern to that for SFs.
Single Family Sales by Price
Another way to look at sales is the distribution by price. In 2019, 55% of Single Family sales were under $1 million and by 2023 that had dropped to just 3%. Conversely, the share of sales over $2 million went from 4% to 58% in the same period. (more…)
BONITA BAY MARKET 2023 MARKET REPORT and 5-YEAR REVIEW
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO). Median numbers are used in all calculations.
Click BONITA BAY 2023 MARKET REPORT and 5-YEAR REVIEW to donwload a copy of this report.
Median Price and Sales
The median price of the Single Family homes sold in Bonita Bay more doubled from just under $1.2 million in 2019 to $2.5 million in 2022 and 2023.
Sales increased from 2019 to 2021 and have since dropped back below pre-pandemic levels. (more…)
BONITA SPRINGS 2023 MARKET REPORT and 5-YEAR REVIEW
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO). Median numbers are used in all calculations.
Click BONITA SPRINGS 2023 MARKET REPORT and 5_YEAR REVIEW to download a copy of this report.
Median Price and Sales
The median price of the Single Family homes sold in Bonta Springs increased more than 80% from $409,900 in 2019 to $750,000 in 2023. Sales surged until around Q3 2021, thereafter returning to pre-pandemic levels in 2022 and 2023.
The median price of Villas (attached and detached) sold increased almost 80% from $308,500 in 2019 to $552,500 in 2023. Sales followed a similar pattern to that for SF. The decline was greater – but on a small number of sales.
The median price of Condos (and Townhouses) increased 85% from $259,000 in 2019 to $480,000 in 2023. Sales in 2023 dropped to a little below the pre-pandemic number.
Single Family Sales by Price
Another way to look at sales is the distribution by price. (more…)
NAPLES 2023 MARKET REPORT and 5-YEAR REVIEW
This report analyses the Median Price and Sales per quarter since 2019, along with the Sales by Price point, Price per Sq.Ft., and the Days properties were on the market before receiving an offer (DTO). Median numbers are used in all calculations.
Click NAPLES 2023 MARKET REPORT and 5_YEAR REVIEW to download a copy of this report.
The numbers have been dramatic over the last few years, for all the well-known reasons. With the market returning to more normal conditions, pricing and condition are again important. If you are thinking of selling, please contact me for a current market analysis for your property. (more…)
More Properties Listed, Supply Still Short
The recent pullback in mortgage rates is spurring more homeowners to put their homes up for sale, though the increases so far have been too modest to return the housing market’s inventory of available properties back to pre-pandemic levels.
The number of active listings, a tally of U.S. homes on the market that excludes those pending a finalized sale, climbed 4.9% to 714,176 in December from a year earlier, the biggest annual increase since June, according to data released this week by Realtor.com.
A big part of the increase was due to a 9.1% jump in new listings, or properties that made their market debut in December, which posted an annual increase for the second time after 17 months of declines.
As is typically the case, active listings declined in December from the previous month, falling 5.5%. But the drop was less than the typical decline of 6.8% to 13.2%, Realtor.com said.
While the pickup in home listings is a welcome development for prospective homebuyers, the housing market remains constrained with for-sale inventory still well below pre-pandemic levels.
Consider that active listings were down 30.9% in December compared to the same month in 2019, while new listings were down nearly 12%.
Housing economists expect that the average rate will continue to decline this year, though forecasts generally see it moving no lower than 6%.
That may not be enough to motivate many homeowners to sell, given that some two-thirds of U.S. homes have a mortgage with a rate under 4% and more than 90% have a rate below 6%.
That means the upcoming spring homebuying season is likely to favor sellers as homebuyers compete for a relatively limited number of homes for sale. (Florida Realtors)
And read these articles:
Why Mortgage Rates will fall in 2024
Transitory inflation? Recession? What else will forecasters get wrong?
More insurers coming to Florida
- Andrew Oliver, M.B.E., M.B.A.
Real Estate Advisor
Andrew.Oliver@Compass.com - AndrewOliverRealtor.com
m 617.834.8205
INFLATION and RECESSION UPDATE
This time last year, stocks were still in the gutter, inflation was in the stratosphere and Fed interest rates were going up, up, up. Today the S&P 500 has risen 17% since Jan. 1, the much-anticipated recession has yet to arrive, unemployment remains below 4% and consumers are still spending–Walmart, Target, and Gap all beat expectations this week.
Inflation has dropped to around 3%, not too far off the Fed’s 2% target. Walmart CEO Doug McMillon was talking about deflation in the coming months. Oil prices are below $75 a barrel, Airfares are significantly cheaper this year than they were for the holidays last year. Bond yields are dropping, too, as traders start to price in Fed rate cuts next year. The 10-year yield has dropped back to around 4.4% from as high as 5% in October. (Barrons)
On Thursday, Walmart CEO Doug McMillon said deflation could be coming as general merchandise and key grocery items, such as eggs, chicken and seafood get cheaper.
He said the retailer expects some of the stickier higher prices, such as the ones for pantry staples, to “start to deflate in the coming weeks and months,” too.
“In the U.S., we may be managing through a period of deflation in the months to come,” he said on the company’s Thursday earnings call. “And while that would put more unit pressure on us, we welcome it, because it’s better for our customers.”
“I think the most important observation we’ve made is that the worst of the inflationary environment is behind us,” Hone Depot, Chief Financial Officer Richard McPhail
The question now is whether the Federal Reserve, having been extremely slow to start raising rates and reversing Quantative Easing, will be similarly late in easing. The Fed claims to be data dependent, but data tells us what happened in the past – and the Fed’s actions impact the future.
“The Fed must lower rates to cause money suply to grow by 5% per year, consistent with the 2% inflation target.If the Fed waits until core inflation is 2% we could have a recession.”(Jeremy Siegel, Wharton)
And read these articles:
Why Mortgage Rates will fall in 2024
Transitory inflation? Recession? What else will forecasters get wrong?
More insurers coming to Florida
Core Inflation Prices Barely Budged in August
August Housing Market: Median Prices Rise Year on Year
Market Reports
BAY FOREST Q3 MARKET REPORT 2019-2023
BONITA BAY Q3 MARKET REPORT 2019-2023
IMPERIAL GOLF ESTATES Q3 MARKET REPORT 2019-2023 (more…)