Florida Housing Market Predictions – The Big and the Small
As we head into 2013, the housing market in the Sunshine State isn’t completely sunny. Think of it more as partly cloudy. Some areas are poised to see big gains in 2013, while other areas may not have as bright of a new year.
So, what’s the story in Florida? What can homeowners there expect next year?
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1. You may get a bigger return on your investment if you live in a smaller metro
When you think of Florida, you probably think of the big cities – like Miami, Ft. Lauderdale, West Palm Beach, Tampa, and Jacksonville. However, you just might see your property values skyrocket in another, smaller part of the state…
…Vero Beach. Business Insider has ranked Vero Beach 5th in country when it comes to five-year appreciation. Or, in other words, if you own a home here now, your home’s value will do some of the fastest climbing in the country by 2017. Just how much climbing are we talking? According to Business Insider’s projections, Vero Beach homeowners can expect their home values to go up 8.7% each year for the next five years. So, if your home is worth $100,000 today, it will be worth $143,500 by 2017. Vero Beach isn’t the only small Florida metro getting some love from Business Insider, though. They’ve also got Panama City and Ocala ranked in their top 10.
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2. You’ll get more bang for your buck down south, too
Ever since the housing bubble burst, South Florida homeowners have watched their home values go down, down, down. After all, homes in Miami, Ft. Lauderdale, and West Palm Beach skyrocketed to astronomical levels (some of the highest in the country, to be exact) during the mid-2000’s, so, unfortunately, they had nowhere to go but down. But now, it looks like that tide is starting to change. One-third of the communities in Broward County (where Ft. Lauderdale is located) saw double-digit home price increases in October, and local realtors say some buyers are even willing to pay more than the appraised value for homes! That’s an incredible comeback, especially when you consider that Broward County’s median sales price was cut in half after the housing bubble burst. But remember, foreclosures are still a big problem in South Florida. Until all of those distressed properties are off the market, homes here won’t be able to reach their full value potential.
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3. More neighbors to get to know
Florida may have long had a reputation as the sun and fun capital of the world, but ever since the economy crashed, the Sunshine State has been nowhere near full. That’s because Florida has some of the worst home vacancy rates in the country. The problem is due mostly to Florida’s economy, which was hit particularly hard by the recession. After all, this is a state that relies heavily on tourism. Since Americans have been taking fewer vacations, Florida’s economy suffered more than other states. It led to foreclosures and abandoned homes, many of which have sat vacant for years.
In Cape Coral, more than 35% of homes were vacant in 2011, and seven other Florida metros were among the nation’s worst when it came to vacancy rates. However, with the housing market starting to slowly tick back up, there may soon be an influx of new Floridians. That means homeowners here will soon be able to pull out there “welcome wagons” and get to know a whole new set of neighbors!
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