If trophies were handed out to states for various accomplishments, The Sunshine State would likely either need a bigger trophy case or a second trophy case. Each week it seems as though Florida leads the way in yet another statistic, particularly when it comes to real estate. To add to this list, a recent analysis found that home prices in Florida rose more than any other state in 2022. Overall, home prices rose by 17.27% in Florida during 2022. Coming in second place was Vermont where home prices rose by 15.15% last year. Of course, this should not come as a surprise considering that more people moved to Florida than any other state in 2022.
A closer look
As of the most recent publicly available data in December 2022, the average value of a home in Florida was $405,000. For perspective, the average value of a home in Florida in January 2022 was $345,305. Needless to say, this equates to an increase of more than $56,000. As mentioned above, Vermont had the second largest increase in home values of 15.15%. This puts the average value of home in Vermont as of December 2022 at $386,000. As for the state with the highest recorded average home value, that designation goes to The Aloha State. In Hawaii, the average home value as of December 2022 was $902,175. This figure was up 9.63% from $822,924 in January 2022.
As for the state at the opposite end of the spectrum, the average price of a home in Idaho as of December 2022 was $459,947. This equated to a price drop of 0.18%, or by $825, since January 2022.
Although it is difficult to predict where home prices will go from here, it is safe to assume that Florida housing markets will fare better than most other markets across the country due to the persistent shortage of homes for sale and the pace at which people are relocating to The Sunshine State. In addition, another surrogate marker for the real estate market is the number of actively engaged real estate agents in the market. For example, according to the real estate technology company, AgentStory, the number of active real estate agents in the Tampa, FL market was down 6.5% at the end of 2022. Furthermore, Tampa area homes spent twice as long on the market in Q4 2022 as compared to Q4 2021. In particular, Tampa homes were listed for sale for 34 days on the market as compared to 17 days the year before. Of course, if inflation continues to moderate, we also expect mortgage rates to decrease slightly. This should help the market overall as more buyers may re-enter the market.
Are you looking to buy or sell real estate in the South Florida market? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your mobile device as well.