Florida's housing market is thriving despite inflation and other headwinds. This is especially true in the Melbourne area, where active listings are returning to levels not seen since 2019.
The national news story is that real estate has hit a wall. Potential homebuyers are on the sidelines due to interest rates and there is low inventory.
However, this is not the case in Florida. The Sunshine State is filling demand with Americans moving in. They are escaping cold weather and high taxes.
Read on to learn more about real estate trends in Melbourne, Florida. Explore why investing in real estate down in Florida is a lucrative opportunity.
Inventory
Inventory is on the rise in Melbourne, Palm Bay, and Titusville. The number of active listings was nearly 3,200 in January 2024.
Just two years prior, inventory was at its lowest rate in a decade. In March 2022, there were just 765 active listings in the area.
This is good news for residential buyers and real estate investors. Not only does it give them more options, but it also relieves pressure on home prices.
Home Prices
The rising supply of homes for sale could present a great opportunity for those buying real estate. Experts are anticipating home prices to drop after torrid increases over the past few years.
One study ranked the Palm Bay-Melbourne-Titusville area as the most likely to see price declines in 2024. This will allow investors to get in at a more reasonable price.
Population Growth
As a whole, Florida is the fastest-growing state in the country. From April 2022 to April 2023, the population grew by nearly 359,000 people. This was a 1.61% increase over this period.
Melbourne is growing even faster than the state of Florida. From April 2020 to July 2022, Melbourne's population increased by 2.1%. According to the latest estimates, nearly 86,500 people now call Melbourne home.
Many people chose to migrate to Florida during the Covid-19 pandemic. Florida did not implement restrictive Covid-19 policies as many other states did.
However, migration numbers are not sharply falling off. Many people still want to move to Florida for better weather and a cheaper cost of living.
Real estate investors welcome population growth. It means persistent rental demand for landlords looking to fill vacancies.
Mortgage Rates
You cannot talk about real estate without discussing mortgage rates. Currently, mortgage rates are still hovering above 7%.
Real estate experts were hopeful for rate cuts by the U.S. Federal Reserve in the first half of 2024. However, the Fed is maintaining the status quo as the economy is more resilient than previously thought.
There remains hope that the Fed will slash rates multiple times in 2024 and through 2025. If rates do fall, the expectation is that pent-up housing demand will be released.
Your Guide to Current Real Estate Trends
It is an exciting time for real estate investors in Melbourne. Prices appear to be coming down, which will help make upfront costs more affordable. At the same time, demand is strong and people are flocking to the area.
PMI Space Coast has the experience and resources to help maximize your return on investment. If you want to learn more about Melbourne real estate trends, contact us at PMI Space Coast to speak with an expert.
