According to the latest quarterly survey conducted by the University of Florida’s Bergstrom Center for Real Estate Studies, foreign and domestic investors have returned to the Florida market. Recent sales and pricing activity on the housing front support this thesis.
Florida saw unswerving growth for decades, expanding from 2.7 million residents in 1950 to 19 million in 2009, fueled significantly by retirees seeking warm weather and affordable living conditions. But the influx served to spike housing values and markets throughout the state became focused on attracting wealthy splitters and snowbirds, exacerbating the affordability issue. By 2008, the state had the dubious distinction of having some of the priciest housing in the country while losing population for the first time in more than 50 years as half-backs deserted to more affordable markets such as the Carolinas. As the nationwide housing bubble continued to take its toll on homeowner equity, the Sunshine state’s allure as a retirement and second home haven suffered accordingly, despite home prices having dropped 46% (on average) since their peak.
Lower prices have served to turn things around in Florida as it is once again on everyone’s radar — residents, second home buyers and investors alike. In July 2009, the Florida Association of REALTORS reported that existing home sales had increased 18% over the previous year and existing condominium sales had risen 21%. In Miami, the March 2010 median single-family home sales price represented a 3.8% year-over-year increase. And in Orlando, sales were up nearly 32% in March compared to March 2009 while pending sales rose more than 40%, suggesting a continuing trend of home sale activity.
Moody’s Economy predicts that economic growth in Florida will outpace the nation between 2011 and 2016. Unlike Florida’s heyday, the state no longer relies exclusively on retirement relocation and tourism for its economic health. Cosmopolitan areas such as South Florida (Miami-Dade, Broward and Palm Beach) and the high-tech corridor that stretches across the state from the Treasure Coast to Tampa are indicative of the state’s dedication to diverse economic development. A recent University of Central Florida study suggests that in-migration to the state will resume in 2011, and population growth is predicted to climb 1.5% by 2013. For perspective, that would account for nearly 300,000 new residents.
Florida has an abundance of beautiful communities from which new residents may choose. For more perspective on Florida communities, go to PrivateCommunities.com.
