The Future of Florida Home Prices: Predictions and Projections
Image source: Photo by Denys Kostyuchenko on Unsplash
Florida is one of the country’s most popular states for relocation and has been for years. Data from removals and storage professionals shows that of the top 20 cities in the United States with the highest number of new residents, six are in Florida, with three cities in the top five.
You might think this indicates a healthy market for sellers — and you’d be right, for the most part. Currently, home prices in Florida are up 4.5% from last year and are projected to rise throughout 2024. However, homes are staying on the market longer, indicating more cautious buyers. Understanding the factors behind the current trends helps sellers plan for the future and choose the best time to sell for optimal profit.
Experts Weigh in on Florida Home Price Hikes
The recent Home Price Expectations Survey (HPES) from Fannie Mae showed that even the most pessimistic outlooks saw rises on the horizon. However, there was an overall indication that growth could slow significantly in 2025 before recovering in 2026. This suggests that sellers who don’t hit the market now could risk a wait of up to two years to achieve a desirable price.
Doug Duncan, SVP of Freddie Mac, said, “Looking beyond the recent volatility in mortgage rates, panelists expect future rates to decline meaningfully from the recent highs of 8 percent. This would obviously provide improved affordability for potential homebuyers, although anyone expecting the return of the extremely low-rate environment from 2020 to 2022 will likely be disappointed.”
This national outlook is currently reflected in areas of Florida. Home prices are still rising, with a current median of $404,100 that matches the national average. However, your location in Florida significantly impacts the price of your home. For example, homes in Palm Beach Gardens recently increased by an impressive 60.7%. This is apparently driven by an influx of wealthy newcomers who have upgraded the perception of the area as a “place to be” for millionaires.
Conversely, in Altamonte Springs, prices have dropped 10.4% year-on-year. The number of homes sold here has been declining, and sellers are reducing prices to encourage interest. However, experts are still optimistic that sales will increase. Dr. Brad Cooper, Chief Economist at Florida Realtors®, noted that “There’s still a lot of money flowing through our industry. Over the next several months, the market could reignite a little bit.”
Factors Disrupting the Florida Property Market
What’s causing this mixed outlook for Florida home prices? Various national and local shifts in the economy and industry are playing a significant part.
Green Energy
The Sunshine State is officially going green, with many Florida cities aiming for 100% renewable energy by 2050. This could encourage buyers to seek out environmentally friendly homes with better insulation, solar panels, integrated LED lighting, and other “green” features. Sellers could lean into this and invest in renovations that allow them to increase their prices to match buying trends.
The Rise of AI in Real Estate
PropTech, or property technology industry, is a rapidly expanding field and, like most other disruptive technology industries, is quickly adopting AI. AI algorithms help assess the risks of investments, predict buying and selling trends, and provide personalized recommendations. The upshot is that it attracts buyers who want to spend less time gathering large volumes of data on a property and its location. AI empowers homebuyers to view more properties in less time, attend virtual viewings and tours, and make decisions without ever seeing a home in person.
On the flip side, if an AI bot tells a buyer that house prices in an area might decline, it could discourage them from buying. This adds another level to the pressures facing sellers in an already unstable market.
Strategies for Handling Slowed Growth in the Florida Housing Market
Even though growth has slowed, prices are, on average, still rising. Sellers should investigate recent sales in their local area to ensure they’re not inadvertently pricing themselves out of the market. As seen above, you can’t sell your home for Palm Beach Garden prices if you live in Altamonte Springs, no matter how luxurious your house is.
Sellers can also research current buying trends. View comparable properties — “comps” — and assess what these homes have in common in terms of features. Consider updates and renovations for your home, always weighing costs against the potential profit of your home.
In the long term, average home prices in Florida are rising, but in certain cities, growth is down, and high home prices are not sustainable. However, prices could recover by integrating environmentally friendly technology and features and understanding new buying habits.
Finding Alternative, Trusted Ways to Sell Your Florida Home
Conventional home listing and waiting for an interested buyer isn’t necessarily the fastest or even most cost-effective way to sell your home. Many new Florida residents want specific types of properties, such as waterfront homes. At the same time, current owners might find it challenging to offload their property using conventional means unless it has in-demand features or proximity to desirable facilities and conveniences.
However, there is another way. Homeinc offers an alternative to dealing with the ups and downs of selling by assessing your property and offering a cash sum. There’s no need to overspend on renovations or updates to meet market trends. We buy your home as-is for a fast sale — we can close in as little as five days.
For more information on an offer for your Florida home, contact Homeinc at 888.850.2636 and speak to a member of our team.
