You may find this Florida real estate information shocking.
First up, South Florida real estate supply continues to fall.
One year ago today, South Florida had 63,926 units available for sale. Today there are 54,861.
That’s a 14% drop in the last 365 days.
Longtime readers follow my inventory update at the bottom of this essay. As you can see in the bolded font below, supply is down 38 of the last 52 week. In other words, supply fell 73% of the prior 52 weeks.
If you’re a homeowner, or soon to be home seller, you may feel bullish about this data. Not to burst your bubble, but you need to put this data into perspective.
Industry experts like to use 2019 as the last year data was “normal.” This was before the pandemic hit. Then, our entire Florida real estate sector saw prices rise faster and higher than any time in history.
In late 2019, there were about 54,000 homes on the market. That’s about the same as today.
But here’s where the data separates.
Florida Real Estate Goes Asymetrical
On this date in 2019, the 30-year fixed mortgage was 4.29%. The median Florida home price was about $265K.
Today, the 30-yr mortgage rate is near 6.3% and the median Florida real estate home price is almost $374k.
So, since 2019 the cost of money is 47% higher while a Florida home is about 40% more expensive.
Knowing this, South Florida real estate continues to be some of the most desirable in the country.
By now you’ve heard about Miami’s explosive grow as it become’s “the future wall street.” Tech-heavy executives continue flocking there with hundreds of billions of dollars behind them.
West Palm Beach has a few mega-billionaires and their friends buying up prime commercial properties with plans to convert them into something much larger – most of the plans are stunning.
Money if Flowing to These Florida Real Estate Markets
These two areas alone are driving demand for Florida real estate more than ever before.
From a recent Forbes essay,
“Over the past several years, the region has become home to an estimated 20,000 financial‑services firms employing more than 250,000 people, and since 2020, well over 1 trillion dollars in assets under management has relocated to Florida.
West Palm Beach, in particular, has become the epicenter of what many in the industry now call “Wall Street South.”
I still don’t know what a trillion dollars means as it’s so far-fetched, but…
The influx of “smart” money creating new experiences and developments with forward-thinking projects appears to be in “the mid innings of this baseball game.”
Today was a lot of information to chew on to get you to this point: it’s never about timing the market… but about how much time you spend in the market.”
Florida real estate should be on your list of long term assets to own.
With this mindset, there’s time left in the game to win – you just need to be in the game.
(Main Photo Above: The Delray Historic Marina)
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*** South Florida Real Estate Inventory is ABOVE 2019***
Last week’s supply was 55,261
Today’s supply is 54,811
*** Supply is DOWN 38 of 52 weeks ***
