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Florida is usually in the limelight, nationally and internationally, when it comes to real estate investors and those wanting a place in the sun. Whether you're an investor or a homebuyer interested in the Sunshine state, there are several factors that affected the 2019 market.
Three main factors had an effect on the real estate market in Florida: Economy, Employment and Population. These three factors were in motion in 2017 and 2018 resulting in the real estate market trending upward in Florida.
Florida's economy has a direct effect on real estate market trends across the state. In 2018, Florida's economy was heavily impacted when it experienced a healthy boost from tourism. The economy reached $1 trillion. The trend in an increasing economy was a key factor for 2019 and the housing market in Florida.
As one of the factors that affect real estate market trending, an increase in employment opportunities play a vital role. With Florida being in the top ten states experiencing job growth due to its economic growth, more people, which include families, are making the move to the state.
Florida has a 1.3 percent growth in jobs, which is more than the 1.2 percent the national average experiences. The increase in Florida's job opportunities is expected to continue.
Florida is rated #3 as one of the most populated states with a little over 21 million residents. The anticipated 1.8 percent growth that Florida was experiencing in previous years was expected to continue into 2019 expanding the population to more than 22 million. The population is an indicator of the state's real estate market.
For 2019, the housing market was projected to continue its incline with the buyer's market being the focal point. The values associated with homes for sale in Florida showed an increase of 4.1 percent over a 12-month time frame beginning in 2018 and going into 2019. The values are anticipated to rise another 3.6 percent into next year.
Along with the economy, employment and population, two other trending factors have had a direct impact on Florida's real estate market: Tax and Mortgage Rates.
Florida does not have a required state income tax, which has continued to make it a desirable destination. This has resulted in an ongoing trend in an increase in the state's population. A 1.63 percent increase in population occurred in 2019. Overall, an 11 percent increase in population has occurred since 2010 when the last U.S. Census was taken.
Instead of mortgage rates rising in 2019 as predicted by experts, the rates took a fall to 3.82 percent; the lowest in two years. The expectation has been that while the lower rate remains in effect, the housing market will see an influx in home buyers.
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