If you’re wondering where the housing market is booming, look no further than Florida real estate. The state’s economic growth surpassed the national average in 2014, according to the U.S. Bureau of Economic Analysis in June 2015. Part of this economic turnaround was driven by real estate, rental and leasing.
Florida vs the Nation
The growth of the real estate market in Florida has more than tripled the national average and only trails North Dakota, according to federal figures. Overall, Florida has the strongest economic growth of any Atlantic state and ranks number 11 in the nation.
Over 20 percent of Florida homes had negative equity as of April 2015, which was higher than the national average of nearly 17 percent, according to Zillow. Meanwhile, delinquent mortgages were at 11 percent in the state, which was higher than the national average of 6 percent at the end of 2014.
Timeline of State’s Turnaround
- 2006: Florida housing prices peak
- 2007: State housing prices drastically fall
- 2008: Severe financial meltdown across global markets
- 2011: Sales and listings in Florida begin to recover
- 2012: Florida’s home prices reach a bottom as recovery begins
- 2015: RealtyTrac reports zombie foreclosures are significantly down in Florida
Although Florida still has among the highest zombie foreclosures in the nation along with New York and New Jersey, 2014 marked a significant drop of 43 percent year-to-year in the state. That means that one out of every 324 Florida homes is now a zombie foreclosure. Zombie foreclosures in South Florida, by comparison, are down by 46 percent for the same period. Estimated values for vacated foreclosures are 22 percent lower than foreclosures occupied by owners.
Florida real estate prices have steadily improved each year since 2012. In April 2015 Zillow reported the median sales price in the state was $187,750 while the median price per square footage was $119. As far as listings and sales, 2011 was the bottom while year-to-year growth has increased since 2013. The market where bank repossessed homes have sold the fastest in the state has been Tampa.
Miami leads Florida for cities with the highest median home prices by far, while much lower priced homes can be found in Pensacola, Jacksonville, Saint Petersburg, Orlando, Tampa, Hialeah, Tallahassee and Fort Myers. RealtyTrac reported in April 2015 that the current median home prices in the Miami Beach area are hovering near $365,000.