Understanding the current market in Florida

Florida is a great place to live. With an ideal climate, low cost of living, thriving business environment, and a variety of entertainment and leisure activities it’s no surprise that populations are growing. The population boom, combined with historically low inventory, means cities like Tampa, Orlando, and Jacksonville all have hot real estate markets. If your client is looking to move to any of these great cities, here’s what to keep in mind.

Tampa

Tampa is the 3rd largest city in Florida, with 3.1 million people living in the metro area and the population is projected to grow by 25% in the next 20 years. A vibrant city with both historic architecture and modern amenities, it has something for everyone. For tastemakers and culture fans, Tampa, from downtown, to Ybor City, to Hyde Park, has upscale shopping, trendy restaurants, and an active nightlife. Looking for something outdoors? Tampa has a variety of outdoor attractions – like Busch Gardens, Hillsborough River State Park, and beaches only 30 minutes away.

Along with attractions for weekends and before and after work, Tampa also has a strong job market to build day to day community. Last year, Tampa led Florida in job growth, with more than 30,000 jobs created. 

This strong job and population growth, combined with low interest rates have led to a surge in home buying demand in Tampa. Tampa’s average home sales price increased 25.1% in the past year. The average home price is now $417,158, up from $333,402 last year. Unfortunately, there’s little inventory in Tampa to support the strong demand. Inventory is down 63.8% from last year. There were only 1,358 active listings in April 2021, down from 3,748 in 2020. 

Told ya, a hot market!

Orlando

Now onto Orlando. The Orlando metro area is home to 2.6 million residents. By 2030, Orlando’s population is expected to jump to 5.2 million by adding 1,500 residents each week. One of the reasons so many people are moving to the area is that it has lower tax rates and costs of living than other areas (for example, California). 

Typically, 75 million people visit Orlando every year. Big attractions like Disney World and Universal Orlando are top tourist spots. But, many people visit for world-class shopping opportunities as well. And they’re liking the area so much they’re getting jobs and putting down roots.

Orlando is the 6th best place in the country for job growth and ranks as the 23rd best place for business. In the next 10 years, Orlando is expected to add 500,000 new jobs. While many jobs are in tourism, Orlando has strong industrial and high-tech industries. 

Much like Tampa, Orlando has seen home prices soar in the last year. The average home price was $295,000 in April 2021. That’s an 11.9% jump from a year before when the average price was $263,750. Also like Tampa, Orlando is also experiencing record low inventory. In April, there were only 2,655 homes for sale. That’s a decrease from a year before when 7,659 homes were for sale. It’s also a record low dating back to 1995 when the Orlando Regional Realtor Association started keeping records.

The great news is that while Orlando has a strong seller’s market, inventory is expected to improve in the summer. Homeowners will likely want to take advantage of record-high price appreciation. So, more homeowners will list their homes, creating more inventory. 

Jacksonville

Lastly, let’s check in on Jacksonville. Located 35 miles from the Georgia state line, Jacksonville is Florida’s 4th largest metro area. Their metro area is home to 1 million residents. It’s the 25th fastest growing city. In fact, in the next 10 years, more than 800,000 new residents are projected to move to Jacksonville.

This may be because Jacksonville has a vibrant nightlife, historic neighborhoods, and an active street art scene and the largest urban park system in the U.S. Or maybe it’s because it has miles of white sand beaches. It may even be because Jacksonville is only a short car drive or airplane ride away from other great cities, like Orlando and Atlanta!

This population growth is being matched with strong job growth. Last year, Jacksonville saw a 2.8% increase in jobs. And, over the last 10 years, Jacksonville’s GDP grew by 50%, reaching over $87 billion. 

As for the housing market, like Tampa and Orlando, Jacksonville has seen home prices skyrocket. Jacksonville’s home prices have grown 14.1% in the last year. The median home price is now $284,941, up from $249,825. Inventory has also dropped by 58.2%. There were only 3,991 homes for sale in April 2021. That’s down from 9,544 in April 2020. While not as severe of an inventory shortage as the other 2 cities, Jacksonville’s home shortage makes it challenging for buyers to find a home. 

How to Buy and Sell in Florida’s Hot Real Estate Markets

Red hot seller’s markets in Florida mean you need an advantage as a buyer. Lucky for you and your clients, Ribbon is coming to these cities soon, so get to know more about our RibbonCash Offers through our resources and learn how to be the first to empower your buyers with cash in this competitive market. And with Ribbon’s buy before you sell, you can secure a home before listing yours.

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Client doesn't live in Florida? No worries! Ribbon currently operates in NC, SC, TN, GA, and TX so get your client’s dream home today by learning more about how Ribbon can help you.