In what city was The Villages originated?

“The best investment on earth is earth.” – Louis Glickman

The 10 Most Commonly Asked Questions today

about the Florida Real Estate Market

1. How are home prices behaving in Florida in 2024?

Home prices in Florida remain high, with modest growth projected at around 3.4% through the rest of 2024. The demand continues to outpace supply in many areas, maintaining a seller’s advantage, especially in desirable regions like Miami and Sarasota. Inventory levels are increasing slightly, which could slow price growth, but overall, housing remains expensive compared to national averages​​

2. Are mortgage rates expected to drop?

Although mortgage rates are elevated—hovering around 6.6%—there are signs they may decline by early 2025 following recent rate cuts by the Federal Reserve. However, buyers should not expect rates to fall back to the 3% levels seen during the pandemic. Many buyers are waiting for further reductions before making purchasing decisions, though locking in a rate now may still be prudent given current trends​.

3. How is inventory shaping up across the state?

Inventory varies across Florida. Some suburban and rural areas are seeing more homes come onto the market, giving buyers additional negotiating power. Meanwhile, high-demand metropolitan areas continue to struggle with tighter inventories, which keeps prices elevated. Builders are reintroducing pre-pandemic incentives like discounts on closing costs to attract buyers for new construction projects​

4. What trends are shaping buyer behavior?

Remote work continues to drive demand in smaller towns and suburban areas, where buyers seek affordability, space, and a better quality of life. Buyers also increasingly prioritize homes with energy-efficient features and amenities like home offices, given rising energy costs. This trend has shifted some demand away from older condos, which are now facing price drops of up to 20% in certain areas.​

5. Is it a good time to buy a home in Florida right now?

Experts suggest it could be a good time to buy if you plan to stay long-term, especially with interest rates expected to decline gradually. The market is stabilizing, and new listings offer more options for buyers. However, affordability challenges remain, so it’s essential to monitor rates and be prepared to act when the timing feels right​.

6. How is the rental market performing in Florida?

The rental market in Florida continues to thrive, driven by demand from those priced out of the housing market and retirees seeking seasonal rentals. Many investors are pivoting from quick-flip properties to longer-term rental investments due to consistent tenant demand, especially in metropolitan areas like Orlando and Miami​.

7. What areas in Florida are seeing the most buyer interest?

Demand is particularly strong in amenity-rich, master-planned communities like Lakewood Ranch and Palmer Ranch, where buyers are drawn to lifestyle features, schools, and social opportunities. The Suncoast region, which includes Sarasota and Venice, is also a popular destination for relocations, particularly for retirees from the Northeast and Midwest​.

8. How has the higher cost of living impacted Florida’s real estate market?

Rising living costs, including energy prices and mortgage rates, have tempered some buyer enthusiasm. As a result, sellers are adjusting expectations, especially in suburban and rural areas, to align with tighter budgets and the rising importance of energy-efficient homes. Homes with sustainable features, like solar panels, are increasingly sought after by budget-conscious buyers.​

9. Are bidding wars still common in 2024?

Bidding wars have decreased compared to the pandemic period, but they still occur in high-demand areas with limited inventory. While competition has cooled, buyers may still face multiple offers for well-priced homes in desirable locations. This trend varies by region, with metropolitan areas experiencing more competition than rural markets​.

10. What role does migration play in shaping the market?

Florida continues to experience significant in-migration, which bolsters housing demand. Many newcomers come from states with higher taxes or colder climates, drawn by Florida’s weather, no state income tax, and a business-friendly environment. This influx is expected to sustain housing demand into 2025 and beyond, contributing to steady, if more modest, price appreciation​.

(Sources:  The Moving to Florida Guide, Norada Real Estate Investments, Florida Realtors, Benzinga)

We ran a Video on this last week, but it's still timely

The FEMA 50% rule is part of the National Flood Insurance Program (NFIP) and affects properties in flood zones. This regulation mandates that if the cost of repairing or renovating a structure equals or exceeds 50% of the building's pre-damage market value, the entire building must be brought up to current floodplain and building code standards. This could include elevating the structure or adding other flood mitigation measures to meet updated regulations.

The rule often becomes relevant after natural disasters, such as hurricanes, when many properties require significant repairs. For homeowners, this can result in substantial financial challenges, as they may have to not only repair their property but also meet stricter code requirements. If a homeowner fails to comply with these standards, they could face issues with insurance or permits, and their community’s eligibility for NFIP-backed insurance could also be affected.

This rule ensures future resilience against floods, but it can make rebuilding more expensive and slow the recovery process, particularly in areas impacted by severe storms like Hurricane Ian. Some counties, such as Lee County, have tried to ease the impact by adjusting timelines and regulations to support rebuilding efforts while staying compliant with FEMA's requirements (e.g., limiting the timeframe for calculating cumulative repairs)

(sources: WUWF, WGCU, Legal Scoop on Southwest Florida Real Estate).

The Villages originated in Lady Lake, Florida. It started as a mobile home community and expanded significantly over the years into the large retirement community it is today.