The Hottest Housing Markets In Florida In 2021
Florida is no stranger to major fluctuations in its housing markets, having gone through multiple boom-and-bust cycles dating back to the land boom of the 1920s. However, the last year’s Covid-19 pandemic threw Florida and national housing markets for a loop, but six months into 2021 has seen a major reawakening of home buying activity. Using data from Redfin, including the number of new listings, pending sales, for-sale inventory, and median sale prices from May 2020 to May 2021, we’ve determined the top-five hottest housing markets in Florida of 2021. Read on to find out which cities made the list.
Located just to the southwest of Fort Myers, Cape Coral has grown from a small planned community into a full-fledged city with a population of more than 200,000. Thus, Cape Coral has been a popular place for some time, with prices steadily rising over the last decade. However, just in the last year, Cape Coral’s housing market has really caught fire. Pending sales have risen by 47.5%, from 488 in May 2020 to 720 in May 2021. New listings are up as well, rising from 518 in May 2020 to 757 in May 2021, for an increase of 46.1% in 12 months. All this activity has cut down Cape Coral’s available for-sale inventory. From 1,699 homes for sale last May, Cape Coral’s inventory is down to only 539 homes in May 2021 — a decline of 68.3%. With supply low and demand high, home prices have risen sharply in Cape Coral. The median sale price in May 2020 was $240,000, before soaring by 37.5% to reach $330,000 by May 2021.
Port St. Lucie
Port St. Lucie got rocked by the housing crash back in 2007-2008, as did much of Florida, but has since recovered, with home prices rising fairly steadily since 2012. Over the last year, however, Port St. Lucie’s housing market has experienced a flurry of activity, causing prices to increase quickly. The number of new listings increased by one-third from May 2020 to May 2021. Over the same period, the number of pending sales nearly doubled, from 295 pending sales last May, to 564 in May 2021. Meanwhile, Port St. Lucie’s available inventory has been seriously depleted by all this activity, falling almost 52%: From 1,691 homes for sale in May 2020, down to 813 for sale in May 2021. This has helped drive the median sale price up 22.4% since last year, from $241,000 in May 2020 to $295,000 in May 2021.
Miami has the third-hottest housing market in Florida, with a staggering 137.1% increase in pending sales, from 685 in May 2020 to 1,624 in May 2021. New listings also increased markedly, by more than 40% year on year, from 1,528 listings last May, to 2,144 listings in May 2021. For-sale inventory took a hit, declining by 29.1% over the same May-to-May period. All these factors have fueled a rise in Miami home prices, with the median sale price increasing by more than $60,000, from $350,00 in May 2020 to $413,000 in May 2021.
Much of the Tampa Bay area has experienced an uptick in home buying over the last year, but St. Petersburg stands out the most. Pending sales increased by 32.1% from May 2020 to May 2021, while new listings increased by 19% over the same period. What’s more, available inventory in St. Petersburg has dropped by 59.6%, from 1,370 homes for sale in May 2020, down to only 554 in May 2021. The impact on prices is hard to miss, with the median sale price in St. Petersburg rocketing by 26.7%, from $240,000 in May 2020 to $304,000 in May 2021.
Just across the bay from St. Petersburg is the fifth-hottest housing market in Florida — Tampa. The number of pending sales grew by more than 29% year over year, and the number of new listings increased noticeably as well. The surge in demand has taken its toll on Tampa’s available inventory. From having 2,342 homes for sale in May 2020, Tampa’s inventory fell more than 61%, down to only 908 homes available in May 2021. Even more telling is how fast homes are going off the market. The median number of days a Tampa home spends on the market before being bought up is a mere seven days, down from 25 days in May 2020. All of this has helped to escalate home prices in the city, with the median sale price rising from $273,000 last May, to $320,000 in May 2021.