Florida Market Update - February 24’
Blue Bay Fund I
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Hello investors. Valentine’s Day is right around the corner, and I am positive you are thinking of something great to treat your special someone to. I plan to take my wife to one of Tampa’s great restaurants, maybe Ocean Prime or Eddie' V’s. In the meantime, what does the FL real estate market look like? Well, it's cooling off if you have not figured it out. So, in this month's Florida Market Update Report, I’ll dive into how the real estate market looks and how it may impact my capital and real estate investors.
FEBRUARY 2024 FLORIDA SFR MARKET REPORT
FLORIDA SINGLE-FAMILY RESIDENCE MONTHLY INVENTORY
MONTHLY INVENTORY
This data is based on spot data for a specific time period and market. It is a measure for Active Listings for current month divided by Sold + Expired listings from prior month. This data is a RAW Score report, reflecting the actual numerical value for that particular Metropolitan Statistical Area "MSA". Raw scores do not rank or compare a market’s score against any other market; multiple markets could have the same or similar raw scores.
The Heat Map Key to the left indicates what the corresponding MSA colors mean. Red equals very few months of inventory, <1, while pink equals the most months of inventory, >8.
As you saw from last month's report, there was an anomaly with the Punta Gorda and the Naples Marco Island MSA as far as the Monthly Inventory. It seems to have come back to normal ranges for this time of year. Whether that was due to a glitch in the data, I could not tell you, but as of January’s numbers, we can see that the average month’s inventory is hovering around 3.1 months, with the MSA having the greatest amount of inventory being Punta Gorda with 4.3 months. THe Central FL market has been holding to solid months of inventory, below 3.0 months, while the Jacksonville MSA is leading the state with the least amount of month s inventory, right around 2 months.
FLORIDA SINGLE-FAMILY RESIDENCE DAYS ON MARKET
DAYS ON MARKET
This data is based on spot data for a specific time period and market. The Days On Market metric is the median number of days between a property’s listing and when it is noted as ‘sold’ or ‘off the market'. This data is a RAW Score report, reflecting the actual numerical value for that particular Metropolitan Statistical Area "MSA". Raw scores do not rank or compare a market’s score against any other market; multiple markets could have the same or similar raw scores.
The Heat Map Key to the left indicates what the corresponding MSA colors mean. Red equals very few days on the market, <45, while pink equals the most days on the market, >180.
Days on Market is not necessarily the key metric to watch, but it is important. We began to see the cool-off starting in January, and the trend seems to continue. On average, the Days On Market is held at 70, with the MSA holding the longest DOM being the Crestview/ Fort Walton Beach/ Destin MSA. I will comment that in the 10 years I have been making private loans, the winter and early spring seasons do hit the panhandle strongly. Pensacola is unique due to its proximity to Gulf Shores, as well as a large multi-branch military base in Pensacola. The steady stream of military personnel arriving and leaving keeps the housing market fairly stable in that MSA. For our real estate investors, your expectation should be that after you list your property for sale, you have it on the market for at least two months. Seeing as this is the trend, you should definitely make sure that your loan term allows for additional months of sitting on the market to be able to sell. For my capital partners, your expectation should be some of our loans will need extensions, which I gladly offer to those investors who make their payments on time and have a clear exit path moving forward.
FLORIDA SINGLE-FAMILY RESIDENCE AVERAGE LISTING PRICE
AVERAGE LIST PRICE
This data is based on spot data for a specific time period and market. The Average List Price metric is the average price of all properties listed during the month. This data is a RAW Score report reflecting the actual numerical value for that particular Metropolitan Statistical Area "MSA". Raw scores do not rank or compare a market’s score against any other market; multiple markets could have the same or similar raw scores.
The Heat Map Key to the left indicates what the corresponding MSA colors mean. Red equals very inexpensive properties, <$200K, while pink equals luxury properties, >$800K.
As we can see, the market is relatively stable in terms of average list prices. There are several MSA’s that we should keep an eye on in the coming months. The Cape Coral/ Ft. Myers MSA has grown steadily in A.L.P. over the last four months. This is a good thing. The Ft. Lauderdale/ Pompano Beach/ Sunrise MSA has seen a steady decline in A.L.P. There seem to be fluctuations for the rest of the state but no major movement outside of 5% in either increase or decrease in A.L.P. We will stay abreast of this and consider the two MSAs named above.
AVERAGE LISTING PRICE
I trust this months Florida Market Update Report was informative and beneficial. If you have found it helpful, I would appreciate you sharing the report with those who are interested in investing in the state of Florida, whether actively in purchasing property or passively through partnering with me. As we grow our data base of information I will be able to expand metrics that make sense for you and in helping you decide how to best invest in the State of Florida moving forward.
With Honor,
Edwin D Epperson III,
Manager& CEO
- Soli Deo Gloria
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