The housing market in Florida has been making headlines as loads of people pack their bags and head south. Florida has led the country in net migration — people moving here from another state — for more than five years in a row, and the pandemic accelerated that population growth.
Our warm weather and relatively low cost of living makes it attractive for retirees, but it’s also a great spot for those still in their prime working years, whether they’re searching for an office environment or looking to log on from the beach.
While the state is clearly an appealing place to live, buying or selling a home here in 2023 looks much different than it did in the past couple of years. Mortgage rates have skyrocketed, and real estate doesn’t look quite as sunny anymore as homes stay on the market for longer. Read on for everything you need to know about the Florida housing market.
Florida housing market trends and stats
Whether you’re looking to buy or sell a house here, here’s some helpful data from Florida Realtors to consider.
- Median sale price: In April 2023, the state’s median sale price was $410,000. That’s the same figure as the year before and slightly above the national median.
- Sale-to-list price: Back in April 2022, buyers typically paid the full 100 percent of a home’s list price. But in April 2023, buyers paid around 96.7 percent of the original list price — an indication that buyers are gaining more leverage in the market.
- Days on market: The median time to contract for a single-family home was 31 days in April, significantly longer than the typical 8-day timeframe of the year before.
- All-cash deals: Many Florida buyers do not need to secure financing for the deal. Of the 23,334 single-family homes sold in April, nearly 7,000 were purchased in cash.
- Closing costs: The state’s average closing costs total 2.3 percent of the purchase price, according to research from ClosingCorp. So, on a $400,000 sale, that’s $9,200 in costs like title insurance, transfer taxes, appraisal fees and more.
Buyers and sellers in the Florida housing market
Is it a buyer’s or seller’s market in the Sunshine State right now? Well, kind of neither. A shortage of available inventory puts the power in the hands of the seller here, but rising mortgage rates mean fewer qualified buyers, and more closings for under asking price mean buyers do have some leverage. Here’s what to know, depending on which side of the table you’re on.
Selling a home in Florida
Florida sellers still have the upper hand in Florida, simply because there aren’t enough homes available to meet demand. In April, there was just a 2.6-month supply of single-family homes; 5 or 6 months is considered a balanced market.
However, there are warning signals that sellers should consider. For example, it’s taking nearly four times longer for homes to sell now than it did last year, and overall sales dropped by 17.2 percent, according to Florida Realtors. With that in mind, don’t get greedy with your pricing strategy right now — an elevated list price might scare off buyers, who are already feeling the pinch of higher mortgage rates.
Before you list, work with a Realtor to take steps to figure out what your house is worth, and price it competitively. You might even be able to attract an all-cash offer, which is common in Florida. West Palm Beach, Jacksonville and Fort Lauderdale are all in the top five cities in the entire country for all-cash offers, according to a Redfin report.