With rumors of further interest rate hikes and the thought that mortgage rates could go higher by the end of the year, some consumers wonder if it makes sense to buy now.
If you’re looking into buying Florida real estate, it’s a good idea to understand where the market stands now and consider the forecast for the rest of 2017. Here’s what you need to know about the outlook, using data from Zillow.
Florida Real Estate Market Facts
Will Florida Home Values Rise?
There is no way to completely predict any market. The best you can do is look for trends and do you best to take advantage of where you think the market will head next. However, you can get some idea from looking at the data.
According to Zillow, Florida home values have gone up over the past year (as of June 30, 2017). Looking at how home prices have been trending over the last few years, it looks as though Florida real estate is still likely to see some increases in the coming months.
Zillow predicts that home prices will rise 2.9% in the coming year. So, while you have already missed the big gains in home values, buying now can help you avoid missing out on future gains for the market.
However, just because you think home values might rise nearly 3% in the coming year, it doesn’t mean it’s the right time to buy for you. It makes sense to consider whether you are really ready to buy, and whether or not it makes sense for you to buy. Carefully think about your situation, and the reason you want to buy a home, as well as whether or not it makes sense for you.
How Much Do Homes Cost in Florida?
One of the things you have to worry about is how much homes cost. According to Zillow, the median home value in Florida is $209,000. However, the median price of homes currently listed in Florida is $279,900. This isn’t too much more than what you see in the United States. Zillow reports that the median home value is $200,400, and the median price of homes listed is $259,000.
When deciding whether or not you want to buy Florida real estate, you also need to think about how the costs differ in other parts of the United States. Because homes cost more in Florida than they do in other places in the United States, you need to decide if it’s worth the cost to buy a home there.
Also, consider whether or not you might save more money on a monthly basis by renting. The median rent price in Florida is $1,700 per month. With a 10% down payment, you might pay $251,910. Assuming a 3.92% interest rate, that comes out to about $1,191 per month on your mortgage. Even when you figure in other costs of owning a home, you could still come out ahead in monthly cash flow.
Where you decide to buy Florida real estate makes a difference. For example, home prices in Tallahassee are much lower than those in Miami and Hialeah. You can find homes that sell for below the median price in Florida if you look carefully and live outside of some of the higher-priced areas.
Is the Florida Real Estate Market Healthy?
Finally, consider the overall health of a market. Zillow puts the Florida real estate market at a 6.3 out of 10. That means it’s on the healthy side. Additionally, the Florida real estate market forecast calls for gains over the next year — even if they don’t match the gains of the previous year.
This means that the market is relatively healthy. As a buyer, this might mean you don’t have quite the power you would have in a less healthy market. However, you can still probably get standard concessions in some cases.
Carefully think through your options. Decide whether or not it’s time for you to buy a home, and whether or not a purchase in Florida makes sense. Look at the market and trends, and try to find a home that is a little below market so that you can take advantage of any gains in the housing market.