The Difference Between Florida’s East and West Coast Housing Markets
It’s that time of year when homebuyers dream of palm trees, warm breezes, and sandy beaches- or, simply put, Florida. But the question is, which Florida? The sunshine state’s east and west coasts are distinctly different locations. As a result, they have distinctly different housing markets.
Joe Caposella, named by Mortgage Originator Magazine as one of “America’s Top Mortgage Originators”, interviewed real estate agents Dianne Popp and Nancy Jordan on Florida’s East and West coast housing market trends.
Offering straight-forward and friendly service, Caposella and his mortgage team are available for their clients in both Florida and New Jersey.
Florida’s East Coast Housing Market Trends
Buyers can expect to encounter low inventories and high demand on the East Coast of Florida. Joe Caposella contacted Dianne Popp, Award-Winning Real Estate Agent with KW Reserve, Keller Williams, and Palm Beach Gardens, Florida, for her knowledge on the east coast market:
Caposella: Florida offers beautiful weather, beaches, and atmosphere. It’s no secret why ‘snowbirds’ are attracted to the state. What can you tell us about living in Palm Beach County on the East Coast?
Popp: The demand for living space in Palm Beach County is easy to understand. Palm Beach Gardens and Jupiter are extremely desirable, as they’re located minutes from the beach and boast excellent school systems. The neighborhoods feature an abundance of restaurant, shopping, and entertainment options, including the Gardens Mall and the Palm Beach Outlets, a 444,000 sq ft shopping center in West Palm Beach. If you want to enjoy the sunshine, South Florida beaches don’t charge visitors for parking or attendance, and many beaches are pet-friendly.
Caposella: The housing market has been competitive in the US for quite some time. What can buyers expect when looking to purchase on Florida’s East Coast?
Popp: Palm Beach County homes are on the market for an average of 45 days, compared to averages hovering around 68 days last year. Supply and demand has led to an increase in home prices, too. Prices are up by about 12% compared to this time last year.
Caposella: It sounds like prospective homebuyers will need to be competitive with their offers to secure their dream home. The East Coast is a desirable location, what is the rental market looking like?
Popp: The rental market in Palm Beach County is the 3rd-fastest growing in the United States. Rental prices are high and there is plenty of competition as we’re seeing tenants overpaying to improve their odds. While it’s not uncommon for there to be 20+ applicants for one property, some tenants are offering to pay the full year’s rent upfront to stand out. Between investors selling off existing rentals and AirBNB taking up some of the supply, low rental availability has only increased the demand.
Florida’s West Coast Housing Market Trends
From Manatee County to Charlotte County, the West Coast has seen an influx of cash buyers and higher home offers since May 2021. Nancy Jordan, Top Real Estate Agent, International Sterling Society Member, associated with Coldwell Banker Realty in Venice Florida, offered Joe Caposella her insights on the housing market trends for Florida’s West Coast:
Caposella: Can you give us a snapshot of the West Coast housing market? What trends are you noticing in terms of supply and demand?
Jordan: Active listings have increased by more than 16%, but total inventory numbers are still much lower than normal. 89% of homes on the market are sold in less than a month, so the market is still hot!
Caposella: Has the current market discouraged buyers? Or is the West Coast location still an incentive to remain competitive?
Jordan: Buyers from a survey conducted in Southwestern Florida confirmed that they were still confident that now is a good time to buy. New home sales are up more than 2%, which is an encouraging sign for more valuable inventory becoming available to prospective buyers.
Caposella: Comparing the rental and the housing markets, who’s in better shape? Is there any reason to rent instead of buy on the West Coast?
Jordan: The rental market remains very competitive due to the lack of properties. Rent is very high due to demand. If possible, buying a home is the better investment. Homes are starting to stay on the market longer, and keep in mind that condos are staying on significantly longer than single-family homes.
Caposella: What can you tell us about current homeowners? Are there any incentives for staying in a West Coast home long-term?
Jordan: Absolutely. Once you move-in, you’re in a great position as a homeowner. While we’re seeing the prices of homes increase, their value increases as well. As a result, homeowners are enjoying major equity gains- equity being the difference between what you owe and what the property is worth. Interest rates are historically low, allowing buyers to get even more value for their homes. Many homeowners have decided to refinance and improve their homes to stay longer, which contributes to lower inventory rates.
Joe Caposella on Comparing Different Florida Living Options
Florida offers a number of different living options, so there’s enough variety for everyone to find their perfect place. Before meeting with your realtor, take a moment to compare different living options and decide which one(s) work best for your lifestyle:
Island Living
- Beautiful landscape
- Closer to world-famous beaches
- Opportunities for an endless-vacation lifestyle
Mainland Living
- More opportunities for golfing
- Closer to major highways and airports
- More medical facilities
- More options for school systems
Living in a Gated Community
- Additional security
- HOA funding to keep the properties pristine
- HOA regulations ensure the community is kept in good condition
Condo Living
- Never worry about building maintenance
- Building insurance is included in HOA
- Potential for social activities
- Multi-level living
Becoming a Golf & Country Club Member
- Beautiful golf courses and landscaping
- Social activities
- Dining options and other amenities within the country club
Joe Caposella’s Tips for Purchasing a Home in Florida
When purchasing a home in Florida, it’s important to have your home inspected for mold, moisture, and wood-destroying organisms (WDOs).
Investing in a wind mitigation report and hurricane shutters can help save money on your home insurance policy. There are a variety of hurricane shutters on the market, so be sure to compare the cost and effectiveness of each to make the best decision for your home.