The real estate market in Florida was decimated by the crash in 2008. The question today is whether or not real estate in Florida is a good buy? Single family Florida home prices are already up 14% this year, but can home buyers anticipate that the recovery is going to continue, or is it just a temporary spike?
All real estate markets are affected by four key factors, Supply, Demand, Affordability and Growth. These four are the primary metrics that experts look to in today’s real estate market to determine its viability and longevity. Will it last or is another bubble?
Supply: Part One
From a year ago the total inventory of homes available for sale today was 18% lower, while the median price was up 20% during the same time period, indicative of housing inventory depletion and quick sales when the median days on market (MDOM) fell 31% from 68 to 47.
During the same period REO and Short Sales were flat meaning the inventory is being absorbed by the market and with the higher values, homes may not be under water any longer. There was a 14% jump in sales of one family houses and the sales price was 93% of the asking price.
The average home size a year ago was 2052 per sq. ft. while the current figure only dropped 2% and the median price per square foot rose 18% to $85 from $72 per sq. ft..
Housing starts in Metro Orlando increased by 29% during the first quarter of the year according to a report released by Metrostudy Inc. and builders in the four-county metro area started work on 1,801 single-family houses during the first three months of the year, up from 1,386 housing starts for the same period in 2012.