Despite an unprecedented pandemic that resulted in substantial economic challenges throughout the country, Florida’s real estate market finished 2020 with more sales, higher median sale prices and more pending inventory compared to the year before. Needless to say, due to the various lockdowns caused by the pandemic, the home has become an even more important central hub for many Americans. With more time being spent in the home, this has led many people to search for homes providing more space to accommodate these additional needs.
Sales up across housing types
While single-family homes have been the hottest sector in the market, all housing types saw gains in both volume of sales and sales prices. According to the latest housing data released by the Florida Realtors, the following was reported:
- single-family homes: sales up 5.8% year-over-year; median price = $290,000 (up 9.6%)
- condo-townhouse: sales up 2.5% year-over-year; median price = $215,000 (up 12%)
For all residential property types, we were up 20.3% to over $160 billion (total of $162.3 billion) in dollar volume in sales of existing homes in 2020. Florida totaled $124.6 billion in volume in single-family home sales in 2020, up 22.5% from 2019, while condo-townhouse sales reached $36.2 billion in volume, up 13.7% from the previous year.
Moving in forward in 2021, most economists predict that the strong real estate market will continue. As more people become vaccinated and we get closer to herd immunity, it is anticipated that more people will enter the real estate market as either first-time home buyers or buyers looking to upgrade. With mortgage rates expected to remain historically low, this will provide even more reason for buyers to enter the market.
With mortgage rates expected to remain in the low to mid 3% range, it is widely expected that many buyers will want to take advantage of this increased buying power. Of course, tight inventory combined with rising prices will continue to dominate the headlines throughout 2021.
If you are considering a home purchase in 2021, it is critical to formulate a plan and remain nimble to be able to act swiftly in this market. With many properties receiving multiple offers on their first day on the market, buyers will need to prepare for a competitive market. If you are in South Florida and considering buying or selling a home, we can help. Contact Live South Florida Realty, Inc. today.