For the first time in nearly a decade, home prices in Florida are dropping and everyone from supercommuters to seniors are moving to Florida in droves.
In fact, according to Business Insider, Florida is the top state in the country people are moving to. For all out-of-state movers in the country, 12.4% of mortgage requests were for Florida (it would be 2% if people were moving to all states equally), according to LendingTree.
According to a different report from the state’s Demographic Estimating Conference, Florida is growing by more than 300,000 people every year and will hit 22 million residents in 2022.
What Does This Mean?
It means this is an amazing time for Florida Real Estate agents.
Here’s the thing: Until now, home values in Florida were growing, on average, at a whopping 9.8% a year. That’s good, but to a degree. The problem is, that kind of unsustainable growth at practically double digits actually scares people!
Something like 3% to 5% is considered normal, so anything more makes people think two words: bidding war. Because they don’t want to compete with multiple bidders with every home, buyers wait or, worse, walk away.
Home Price Growth is Returning to Normal, Long-Term Rates Making People Comfortable
It’s finally a buyer’s market again, and that’s great news for you, the agent. Don’t get me wrong, as we come to an end of a long market cycle, the tight supply of inventory, particularly homes priced between $150,000 to $300,000, is still historically low. But they are moving fast, and buyers are chomping at the bit to get them.
Buyers hoping to snag a luxury home at a great price are in an even better position. With the abundance of new homes being built to capitalize on the growing population, anything over $400,000 is creating competition, and buyers are winning. It’s great news all around. Literally, ALL AROUND.
Growth Potential is Particularly High
With so many people moving south in a buyer’s market, the advantage for Florida real estate agents is epic! Tampa/St. Petersburg is leading the state in growth and Miami/Ft. Lauderdale is the second hottest area. Even Jacksonville neighborhoods are rapidly growing. These areas with expanding economies and booming populations mean it’s only a matter of time before the area between Tampa and Orlando is a thriving metropolis.
Speaking of Orlando, as the ninth-fastest-growing city in the country, it’s spurring an absolute real estate building frenzy. It’s just part of the reason why central Florida has been at the top for job growth for four consecutive years, according to the Bureau of Labor Statistics. With nearly a billion dollars in development in downtown Orlando alone and a $10 billion-plus in infrastructure projects underway, the massive growth shows there’s no stopping that central Florida economic momentum.
Combine Greater Orlando with the Tampa region and all that space between, and it’s clear that an already-large area of 4.3 million people will soon exceed 5.2 million. With a significant number of Puerto Ricans relocating to the area, and the region in general becoming more radically diverse, it is increasingly looking more like the nation when it comes to its demographics. In fact, the Orlando Economic Partnership’s 2030 report forecasts that 1,500 people will be added PER WEEK in the region within Polk Counties and the large block surrounding cities and towns.
Clearly this supercharged growth is not just the domestic migration of retirees. The metro’s population is now younger and poised to be a pivotal part of the future of development throughout the state.
What Does This Mean for You As A Florida Real Estate Agent?
With buyers moving into Florida from all over the country, and the hot buyer’s market in the state, now is the time to be networking with agents outside your market. The more other agents you can build relationships with, the more of their referral deals will come to you.
I’m seeing it happen every day in my course membership community. Agents are meeting each other, and deals are happening. We’re all doing more business together.
Get ready for big growth in 2020, because the region’s economy is shifting, and there’s billions of dollars in real estate sales to be made.
Ready, Set, GO!