In this video, Felicia talks about the changes in the real estate market in Florida, focusing on land. Spoiler alert – the market is HOT!
From the video:
Are you thinking to yourself that Florida real estate prices seem to have jumped? I know that right now, the value of real estate has gone up quite a bit from last year.
I was working on our list of the cheapest places to buy land in Florida for 2022, and comparing it to our list from 2021. I was shocked at the difference in some of the prices!
In this post, I’m going to share my analysis of that, and talk about the real estate market in Florida.
Florida Land Prices 2021
Last year, we identified the 5 cheapest counties to get land in Florida in 2021. The average price for a quarter acre lot from that data is $2,594. For your record, those counties were Highlands, Putnam, Washington, Marion, and Levy. Keep in mind $2600 is pretty cheap for a quarter acre, and it’s likely that those lots didn’t have any utilities , maybe only had gravel road access, things like that.
Florida Land Prices 2022
2022 has seen a big jump in prices in those areas. Let’s look at 3 counties in particular: Highlands, Putnam, and Levy. In the chart below you’ll see the difference in price per acre for quarter acre lots in those 3 counties from 2021 to 2022.
Increases in all 3 areas! Highlands County saw an increase by 131%. These are crazy numbers. You don’t see this normally. We’ve been working in Florida for quite a few years now, and normally you see a bit of an increase every year, that’s normal. I’m talking like 10-30% range. But 131%? Strange times. I don’t know if it’s because we finally seem to have the worst of covid behind us or if a bunch of people suddenly realized new goals, I don’t know the reason.
It’s not just these 3 counties either, almost all of Florida has seen list prices go up. In the heat map below from realtor.com, you’ll see the median list price for all real estate (not just land!) as of February 2022. You can also see the difference in median list price between this year and last year.
In Highlands County, the swing across all real estate isn’t as large as it was just for quarter acre lots. The year over year difference is a 40% increase. That might not seem like a lot, but think of it this way. In 2021 you want to buy a single family home, and it’s listed for $250,000. Now in 2022, you want to buy that exact same house, and it’s worth $351,000. If you were looking to put 10% down on that home, you now have to come up with an additional $10,000. Not always easy to do.
Should I be Buy Land in Florida Now?
Short answer: yes!
Longer answer: We definitely haven’t stopped buying land in Florida! Yes it’s more expensive, and if you’re worried about coming up with cash for your Florida property investment, just know that our properties have 3 owner financing plans to choose from. You can use the owner financing to your advantage.
Do these types of increases mean we’re in a bubble? Maybe, I’m not sure. To protect ourselves on that front, we try to focus on buying really good properties (we have a checklist we use – you can get your copy below). Properties close to towns, cities, road access, and often with utilities. At least that way we know if the bubble pops, we have good properties that will hold their value and will be worth something when the turmoil is over
I’m interested to see what the rest of 2022 holds in store for us, and for real estate prices.
Are you looking for land in Florida? You can text/call us anytime at (313) 349-0434 for help with your land journey! 😊
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