February 08, 2019
The State of Florida’s Housing Market
Florida tends to be a slight contradiction where real estate considerations are concerned. As mentioned in a prior post, a recent Housing and Mortgage Review by Arch MI included a number of Florida locations— Jacksonville, Lakeland-Winter Haven, and Tampa-St. Petersburg-Clearwater—among its list of 25 of the nation’s most affordable locations for buying a home, and recommended them for the Millennial set’s housing aspirations.
Meanwhile, we have the phenomenon of hurricanes to contend with—most recently, Hurricane Michael. There are certain typical reactions by the Florida market to natural disasters of this type: first of all, because of the jump in the number of damaged and temporarily unliveable properties in areas where a hurricane strikes, those rental properties that went undamaged get filled quickly. Even properties normally reserved for vacation visitors are changed over for a time to long-term rentals, as investors understand the hardships being gone through by locals. This scarcity causes a short-term, hyper-localized spike in cost for rentals, and the lower number of available homes for purchase does the same for both housing prices and construction labor wages. But this never lasts; once repairs are made and homes rebuilt, the market and prices of labor settle back down to normal.
Indications are that we are still in the short-term aftermath of the storm for now, though the steam pressure is releasing in its fashion.
Despite the tendency for hurricanes to land on Florida’s shores, property here is always in relatively high demand. Buyers accept the risk, feeling it is outweighed by the benefits offered by Florida’s sunny clime and warm wintertime weather. We at Topouzis & Associates, P.C. have encountered a good number of people in our upper Northeast service areas of Rhode Island and Massachusetts, in particular, who tend to envision retirement in Florida, and who make plans to do what they can to escape the snow-packed lives they have known.
Should one want to purchase a home in any city in our service area, Topouzis & Associates, P.C., stands ready to aid at closing. Not only do we act as a bulwark against problems of the past, performing title searches and ensuring clear title to property—we also back our services with offerings of title insurance (click here).