Based on Redfin data from November 2024, the home prices in Florida were slightly up at 0.9% annually, with a median price of $408,400. With 24,135 homes sold across the state in November and median days on the market of 69, signs are pointing toward why 2025 may be the right time to buy in Florida if you’re looking for an investment or a place to call home.
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Here are five reasons why 2025 is the year to buy in Florida for either a housing change or a real estate investment.
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1. Market Stability
“The Florida real estate market is expected to reach stability by 2025, with modest appreciation thereafter,” said Alexei Morgado, a licensed real estate agent and the founder of Lexawise.
“After a few years of extremely rapid growth, the appreciation rates are likely to moderate to between 3 and 5% annually, which is a very reasonable level and, therefore, more predictable to buyers.”
If you’ve been waiting to buy property in Florida because of the pricing spikes, this could be the ideal time to make a move with stable growth. Since prices only went up 0.9% for the year, you may be able to find something within your budget if you start looking now.
According to Redfin data, house prices across the U.S. were up 5.4% annually in November, with a median selling price of $429,963, making Florida’s growth much lower. This market stability is the incentive that many prospective homebuyers may have been looking for heading into 2025.
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2. Demographic Growth
“Population trends can say a lot about the future of the housing market, noted Andrew Reichek, a real estate expert and owner of Bode Builders. “With all of these new people moving to the state, they will need a place to live.”
According to Econographic News, Florida’s population has grown 5.1% since the last census in 2020, which is a gain of over a million residents.
There’s no denying that Florida’s perfect weather and lifestyle have been attracting several citizens, leading to a very high growth rate.
“The increased population shows a sustained demand for housing that is stable and provides a long-term appreciation for investors,” Morgado added.
Reichek added that you always want to see a growing population if you’re going to invest in real estate. This demographic indicates that there will be an increase in housing demand in the future, so you’ll want to lock in your real estate investment sooner rather than later.
3. More Inventory
According to Morgado, new home construction will continue to ramp up and give buyers more options.
“This increased inventory could soften the competition and negotiating positions, particularly in major metros like Miami, Jacksonville and Sarasota that saw listings take a little longer to sell,” he said.
An increase in inventory means more opportunities for prospective buyers looking to purchase their first property. You could also try to secure a pre-construction deal on a property in the state.
“Beyond its thriving tourism industry, Florida boasts a robust job market and ample potential for future development, making it an attractive prospect for long-term investment,” remarked Reichek.
The increased inventory with the thriving tourism inventory could be enough motivation to purchase a rental property in Florida in 2025.
4. Competitive Interest Rates
While mortgage rates are still high, experts predict they should stabilize in 2025. Morgado pointed out that lower rates should make housing more affordable and thus more appealing to buyers.
Experts expect mortgage rates to stabilize around 6% in 2025, which could make this the ideal time to start looking for a new property. Even though there are no guarantees that rate hikes will arrive as expected, the experts agree the competitive interest rates will play a factor in Florida’s real estate market.
5. Diversification of Investment Opportunities
Florida is one of the most sought-after destinations for real estate investment worldwide based on insights from Reichek.
“With millions of tourists visiting annually, it offers prime opportunities for investors seeking to profit from vacation rentals. Stricter lending laws and elevated mortgage interest rates are expected to mitigate risks of a market crash,” he elaborated.
Morgado pointed out how Florida offers a variety of property markets, ranging from buzzing city centers to tranquil coastal towns. This diversity allows opportunities for every investor to tailor their investment to their objectives. The options range from a rental income in cities like Miami to capital appreciation in developing areas like Tallahassee.
“Affordable housing prices along with a lower cost of living than other Florida cities all have an influence that makes it attractive for investors and residents alike,” Reichek shared.
Morgado concluded that with stability in the market, population growth and favorable financial conditions, 2025 may be the perfect time to buy a property in Florida.
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This article originally appeared on GOBankingRates.com: I’m a Real Estate Agent: 5 Reasons Why 2025 Is the Year To Buy in Florida