The Florida real estate market has grown substantially through 2021. The 2020 census shows that the state is the 8th fastest-growing state in the United States The median home price is up 20% from last year to an average of $355,000 for a single-family house and $253,000 for a condo. This seller's market in Florida can be attributed to low interest rates, people wanting to live in a warmer climate, and a limited supply of houses available.
How Did Our 2021 Florida Market Predictions Hold Up?
In 2020, we predicted which cities would be the hottest real estate markets in Florida in 2021. Here is how our predictions held up
1. Cape Coral, Florida
Cape Coral has performed well in 2021, with the average home selling for $350,000, up from $284,000 in 2020. They are selling in half the time and went from 2% to .2% under the list price.
2. Jacksonville, Florida
Jacksonville also fared well based on our 2020 prediction. The median home price in 2020 was $235,000, and it increased 19% to $272,000 in 2021. Most houses are selling for around list price in 27 days, down from 38 days, and for 2% below listing price.
3. Orlando, Florida
Orlando, which is home to the most popular theme parks, saw a 14.5% increase in the median home prices up to $315,000 from $282,000 last year. Houses are selling in an average of 13 days, which is almost twice as fast as the 25 days in 2020. The houses now sell for list price or above, and there are more homes available in this city.
4. Pensacola, Florida
Pensacola ended up being a slightly slower market compared to the other cities. Homes can take around 50 days to sell for right around their listing price. Median prices did rise to $247,000 from $205,000 in 2020, making it a profitable year for sellers.
5. Port Charlotte, Florida
Port Charlotte was the hottest market on the prediction list from 2020. Home prices rose 23% from 2020, jumping in median price from $215,000 up to $270,000. Homes have started selling much faster, going from 24 days to as quick as eight days.
What the 2022 Florida Real Estate Market Will Look Like
The Florida real estate market is expected to stay hot into 2022. A lot of people will continue to move to Florida because there is no state income tax. Since residents have more money in their pockets due to not paying these taxes, they can spend more on houses. It will continue to be a seller's market into 2022 due to the number of people moving in and the limited housing inventory.
Fastest Growing Market Predictions for 2022
With more and more people expected to move to Florida, the market should continue its pace into 2022. Here are a few cities that are expected to be the fastest-growing markets of 2022.
1. Fort Myers, Florida
Fort Myers is expected to be one of the hottest markets in Florida in 2022. The city itself has grown by 13% over the last 10 years and is one of the top places people retire to. The city itself is located right on the Gulf of Mexico and has some of the best seashell hunting beaches in the country.
This hot market has seen its housing prices jump 22% to $310,000 since last year and is only projected to go up from there. Most houses sell for right around the list price in about eight days on average. Due to being so close to the beach, the total home inventory is lower than average.
2. Cape Coral, Florida
Cape Coral was predicted to be one of the fastest-growing real estate markets in 2021, and it has made the list again in 2022. This canal-filled city is located on the Gulf of Mexico right across the Caloosahatchee River from Fort Myers. The biggest employers in Cape Coral are the Lee County Health System and Publix, which are constantly hiring to fill their needed positions.
Even though the median home price is $350,000 and is up 30% from 2020, it still has a lot of affordable houses for sale and many open lots to build on. These factors will keep Cape Coral very desirable going into 2022.
3. Lakeland, Florida
Lakeland is located right in the middle of Tampa and Orlando, which gives you a short drive to either the beach or to many theme parks. It has grown by 15% since 2010 and is expected to continue to grow with Amazon opening a new distribution center last year. The median price of homes rose 21% to $289,000, with plenty of available homes on the market. They normally sell for around the list price in about a week's time.
4. North Port, Florida
North Port is a short drive away from the beaches of the Bradenton and Sarasota areas. It is known as an eco-friendly area for its numerous outdoor activities such as biking, boating, and hiking. The city has invested over a billion dollars into everything to help it grow from expanding highways to increasing its wastewater treatment capabilities. This has primed its growth as much as 23% since 2010.
The housing market has its homes selling for a median price of $327,000, up 32% from last year. Homes are selling for 1% over the list price in a week after being listed. The housing inventory is starting to decrease, so it will definitely be a seller's market heading into 2022.
5. Sarasota, Florida
Sarasota, which has grown 13% since 2010, is right on Sarasota Bay. The ever-popular white sand beaches of Longboat and Siesta Keys are all that separate this city from the Gulf of Mexico. Retirees flock to this city to make it their new home, which constantly drives the real estate market.
The housing market has exploded since 2020, rising 34% to a median home price of $402,000. Homes sell within a week of being listed since the total number of available houses is down 10%. This will be another seller's market in 2022, but it won't slow down.
Take Advantage of Florida's Booming Real Estate Market
The warm weather and beaches of Florida help attract many people to the state. This, along with low interest rates and lower taxes, brings in new residents every year. Now is the time to become a real estate agent in Florida. Enroll in the Aceable Real Estate School today to begin your career in this high-paced real estate market.