Leugers Group - Brokered by eXp Realty

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Wednesday, August 24, 2016

The Florida Gulf Coast 2nd Quarter Real Estate Market Update

The numbers are in for the second quarter of 2016. How does this year’s real estate market compare to last year’s?

Home values in the southern region of the U.S. went up 5.9% overall. Floridians should see around a 7% increase in home value. That is down a bit from the previously projected 9% increase in home value, but a 7% appreciation rate is still stronger than what most of the country will see.

Thanks to Brexit and other economic factors, mortgage rates have actually gone down a little bit. Right now, interest rates are hovering right around the 3.5% range. Fannie Mae, Freddie Mac, the Mortgage Bankers Association, and the National Association of Realtors all predict that interest rates will go up anywhere from 4% to 4.37% through the third quarter of 2017. 

Our market may be getting back to normal.

As for our local market, the total number of homes sold during the second quarter of 2016 dropped by 12% from the previous year: in 2015, there were 10,052, and in 2016, there have been 8,810 homes sold.

Don’t be alarmed by that drop; this simply means that our market may be getting back to normal. It looks like we are adjusting back to the 2012 level, which is a pretty good pace for the real estate market.

Meanwhile, home prices in our area increased by nearly 3.2%. In 2015, the median sales price was $232,500. This year, that number jumped to $240,000. That is not the huge appreciation rate we’ve seen in the past year or so, but it’s still a fair rate of appreciation for the second quarter.

If you have any questions about the market or how things look for your neighborhood specifically, give me a call or send me an email. I would be happy to help you!