6 Home Trends to Consider as You Search the Florida Real Estate Market

Florida's reputation for warm weather and its low cost of living have made it a popular destination for senior citizens looking for an affordable and more pleasant place to live. According to Bankrate, for the past five years, Florida has been the state with the highest number of people who choose to move there. In addition to an influx of senior citizens, Florida has welcomed many new citizens since the pandemic who've decided to log in from the beach work and do so from a city apartment.

1. The changing housing market

Despite this increase in new residents, the housing market in Florida is always changing. The state's mortgage rates have consistently increased, as has the cost of homeowners insurance. Houses are remaining on the market for more extended periods. This may make some buyers nervous, but consider Florida’s timeless beauty. No matter what the housing market is looking like, owning a beachfront property is incredibly valuable.

2. Increased number of sustainable homes

Of the homes that are currently selling, many have been remodeled to be more energy-efficient. Sustainability has become one of the priorities on the lists of home-hunting people. Companies building new homes in Florida have been prioritizing "green" building methods when building those homes. In addition, potential clients have been asking specifically for eco-friendly home features like solar panels and smart thermostats.

3. The rise of technology

Like the rest of the world, Florida's real estate industry has begun increasing its use of technological solutions. The pandemic forced real estate companies to use virtual home tours and AI to improve their ability to enhance their marketing targets. Real estate companies are also beginning to adopt other new technologies- including cryptocurrencies like blockchain. Potential clients are also increasing their use of technology; statistics show almost 70% of online experiences (such as a home search) begin with a search engine.

4. Increase in reverse mortgages

One of the reasons many houses remain on the market is that many have been used as part of a reverse mortgage transaction. A reverse mortgage is a payment of money by a banking institution to a homeowner. Using a reverse mortgage is  limited to people over age 62. The amount of the payment is based on the amount of equity the homeowner has accrued in the home. The homeowner is still responsible for paying taxes on the home, but the loan doesn't have to be repaid until the homeowner dies, or the house is sold.

5. Homes used as collateral

Another delay in home sales may be due to some homeowners using their homes as collateral for bail bonds. Bail bonds are requested by those accused of crimes in order to guarantee their appearance in court. Bail bonds are a three-party guarantee that is enacted in order to protect the bail bondsman. According to Florida's Chief Financial Officer, this type of transaction is  known as a surety bond.

6. New cities rise in popularity

Although metropolitan cities like Miami and Orlando have remained in demand with those who move to Florida, other cities are beginning to emerge in prominence as desirable home cities for those moving to Florida. Since those towns have a lower cost of living and a more modern infrastructure, they have become more popular destinations. Some national companies have seen this increase and are beginning to bring branches of their companies to these secondary markets.

Florida's real estate market is changing. According to Bankrate, although the Florida market may be headed for a slight further decline, it will then stabilize. The future of the Florida real estate market is far from set in stone. With the increased use of technology and changes in the most popular Florida cities for people to live in, Florida's real estate market is ever-changing.