South Florida’s housing market is roaring: Should we be worried about a housing bubble?

The median sales price for a single-family home in Brevard County rose more than 19 percent in December 2017, to $227,789 from the same point a year earlier. For homeowners it’s pretty sweet as property values also increase and sellers are able to beef up their asking price if they’re in the market to sell.

But what were once whispers of an overheated housing market are turning into more of an open debate between the “yes, we are” vs. the “no, we’re not even close” camp of a housing bubble.

And what does it all portend for 2018?

Real estate experts are confident 2018 will be just as strong if not stronger than last year, especially if interest rates stay where they are today. Sales prices continue to rise, interest rates are low, and appropriate lending policies are in place. Combined with a strong employment base, 2018 continues to look good.

The latest housing news follows a positive jobs report released last recently by Florida’s Department of Economic Opportunity. In Brevard, the jobless rate last December fell to 3.7 percent over the year, with 3,330 more people working than the prior 12 months.

The health of the Brevard labor market also is helping fuel home prices. Sales price increases have been steady over the past five years.  Employers bringing in more jobs — at a higher base salary than average — account for an increase in new qualified buyers and due to lack of inventory the prices naturally rise due to supply and demand. To learn more about the Florida real estate market or to invest in Florida land, contact 9 Core Realty today.

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