People from all over the world are looking to buy a piece of property in the Sunshine State. In just the past year alone, Florida’s gained more than 200,000 residents, according to the latest census data. Florida has always been an attractive place to live with its warm weather, gorgeous beaches, no income tax, and relatively affordable home prices. It has, of course, long been a mecca for retirees. But now, it’s becoming an increasingly popular destination for younger residents, too. More and more millennials who can work remotely are deciding to do so by the beach. Throw in some investors looking to turn single-family homes and condos into rentals, and you’ve got a perfect storm of increased demand with not enough homes to go around. In fact there are half as many homes for sale as there was the same period a year ago.
Florida is looking less affordable
Median list price per quarter
Florida’s affordability is starting to fade. The median list price in Florida last month was about $434,000—significantly higher than the $392,000 national median list price, according to the most recent Realtor.com data. As people fled the Northeast and Midwest throughout the pandemic, many came with cash. After selling their homes in expensive markets like the New York City suburbs and Chicago, folks found their money could go much further in Florida.
Mortgage Rates Fall
Geopolitical tensions caused U.S. Treasury yields to recede this week as investors moved to the safety of bonds, leading to a drop in mortgage rates. While inflationary pressures remain, the cascading impacts of the war in Ukraine have created market uncertainty. Consequently, rates are expected to stay low in the short-term but will likely increase in the coming months.
