Florida is likely to experience an “onslaught” of homebuyers during the spring and summer, the state’s realtors have been told.
Jonathan Smoke, Chief Economist of the realtor.com website, says 2016 is the year for homebuyers and sellers, the 2016 Florida Real Estate Trends event has heard.
“This should be our best year since 2006. It is now cheaper to buy a home than rent in 77 per cent of counties in the US,” says Mr Smoke.
“Florida is positioned to become one of the hottest spots in the country with rising demand, positive gains in recovery, really good fundamentals and positive momentum.”
In the same way that 2015 was a good year, 2016 looks to be similar, he says with demand outpacing supply
“Fundamentally, we are experiencing a market with not enough to sell. We are forecasting slightly better growth for construction and new home growth, but still not to the usual supply, which is putting pressure on the existing home supply (and existing home prices). On realtor.com, every single month in 2015 had less inventory and inventory was moving more rapidly – and we’re seeing the same in January 2016.”
Dr Brad O’Connor, Chief Economist for Florida Realtors, says, “2015 was a very good year for both home and condo sales,” who notes that as of December, statewide median prices have increased year-over-year for 49 months in a row.”
And Florida’s real estate sector will continue to experience growth and positive momentum in the coming months, he believes. “We expect home sales to increase 8-10 per cent in 2016, while home prices are likely to rise about 5 per cent.”
Garrett Kenny, Chief Executive Officer of leading Central Florida agency and developer, Feltrim Group, says, “It’s true that 2016 has got off to a great start as far as Feltrim Group property demand is concerned.
“It’s not just US investor demand and interest from snowbirds, but international investors, particularly from China, the UK and Latin America, understand the fact that Central Florida’s property market is a hot prospect – and is about to get even hotter!”
Nationally, existing home prices are set to rise 3% year-over-year, with existing home sales likely to also rise 3% to 5.4million, new home sales are set to increase 16% to 580,000 and housing starts to grow 12% annually, realtor.com predicts