The prices of single-family homes keep going up in Florida. During the first quarter of 2021, according to Florida Realtors, the median price had gone up by 17.8% as compared to Q1, 2020. The overall data for the entire state does not seem to reflect the increases in the most desirable areas, and in some spots the increases are even higher. During the same quarter, the sales of single-family homes went up by 20% than a year ago. Florida has become attractive for residents of many other states for a number of reasons and currently the supply seems to be chasing demand. This naturally results in higher prices. From the point of view of residents of some other places such as, particularly the New York Metro, the metros of California, or other large metro areas in the USA, Florida – despite the increases – can still offer relatively less expensive housing. What happens next? Noone knows. That’s an honest answer. It is everyone’s choice whether to work with a broker or agent who tells you the truth or someone who will make unsubstantiated claims. Once again, no one knows what will happen in the market a month from today, a week from today, or even a day from today. That does not mean that one should not think in terms of likely scenarios, keeping in mind that these scenarios while likely, are not guaranteed.
When buying a single-family home, or actually any property, I suggest that first you assess your situation in terms of your plans, finances, needs, desires, and planned use of the property before trying to guess where the market will be some time in the future.
According to Your Needs
I won’t exactly discover America saying that the price of a property depends first and foremost on its location. For example, in Sarasota County, in Sarasota the homes are more expensive than in, for example, in North Port. North Port can be a great place to live for people who do not have to commute, like to have more space around their homes, prefer more laidback lifestyles. Those who like to have the beach nearby, an easy access to a selection of restaurants and entertainment, will more likely choose Sarasota as their home.
So far, I have been using the term “price”, but we should keep in mind that it is more appropriate to view the price of homes as value; it is likely that the more expensive areas will hold their value due to their attractiveness and the resulting demand.