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Florida’s Housing Market Industry Updates

March 6, 2024
LendSure offers loan products for capitalizing on Florida's housing market to attract new residents across the US and worldwide.

Florida continues to reel in new residents from around the country and the world. They’re drawn by the state’s appealing mix of beautiful beaches, a robust economy, and attractive taxes.

The median single-family home price in the state rose to $410,000 in December 2023, up 3.8% from a year earlier, according to the Florida Realtors. The typical price for condos and townhomes was $330,000, a 6.5% increase from December 2022.

In the dynamic landscape of Florida’s real estate market, the latest statistics paint a nuanced picture as of December 2023. While the state continues to experience robust home price appreciation, the sales volumes, particularly in single-family homes and condo/townhouse segments, reveal a current trend of minor adjustments. These key metrics offer valuable insights into the current state of Florida’s housing market:

  • Single-family sales: -3.8% year over year
  • Condo and townhouse sales: -6.2% year over year
  • Active inventory: +17.8% year over year
  • New listings: +5.8% year over year
  • Months supply: +33.3% year over year
  • Days on market: +2.9% year over year

One factor driving Florida’s housing market is the Sunshine State’s population growth. The state expanded by more than 365,000 residents from mid-2022 to mid-2023, according to the latest figures from the U.S. Census Bureau. Only Texas added more people, and only South Carolina reported a higher rate of growth as a percentage of its overall population.

Another driver of the Florida real estate market is the strong state economy. The state’s unemployment rate remained below 3% as of November 2023, and its pace of job growth was among the highest in the nation, the U.S. Labor Department said.

Overall, Florida is experiencing significant growth and development. However, this does come with challenges. – First, the influx of buyers has contributed to an affordability squeeze. While the state’s ongoing insurance crisis shows no sign of abating – ever since Hurricane Andrew hit South Florida in 1992, property owners have been feeling insurance-related sticker shock.

To match the needs of Florida’s real estate market, LendSure offers some hot loan products that will help you build your business:

  • Non-warrantable condo loans. Florida has been ground zero for stricter rules around condo lending. The latest condo guidelines from Fannie Mae and Freddie Mac, introduced in early 2022 to address the structural integrity of condo buildings, caused upheaval in the condo market. If you have a borrower whose conforming deal has been rejected or stalled because of the agencies’ unbending guidelines, we can help. LendSure’s common-sense rules allow for approvals of non-warrantable condos that the agencies reject.
  • The high DTI program. Florida’s median home price was $410,000 in December 2023. At that price level, borrowers are looking for flexibility in terms of amortization schedules and qualifying guidelines. Enter LendSure’s 55% DTI 40-year IO product. This innovative loan allows borrowers to show a debt-to-income ratio of up to 55%. What’s more, the 40-year amortization schedule lowers monthly payments, and the interest-only feature reduces payments even more.
  • Foreign nationals. Foreign buyers are big business in the Sunshine State. The National Association of Realtors recently reported that Florida was the No. 1 destination for foreign buyers for the 15th year in a row. The Sunshine State accounted for 23% of all purchases by non-U.S. residents. LendSure’s Foreign national program presents a huge opportunity for you to grow your business. In the latest year reported by NAR, this market niche experienced more than $53 billion in purchase volume and nearly 85,000 transactions. Many of those buyers don’t qualify for U.S. mortgages, which spells opportunity for you. Foreign national lending doesn’t have to be complicated. When you work with a trusted lender, you can capitalize on this underserved market segment.
  • DSCR loans for investment properties. LendSure’s debt-service coverage ratio (DSCR) program is designed to attract property investors. LendSure looks at market rents to qualify the property (instead of considering only currently rented units to support the loan amount), creating an easier path to approval. In other words, not all units need to be rented. LendSure underwrites the investment property based on both current and future rent. For an explanation of our DSCR loans, see this short video. In another benefit, LendSure’s DSCR program is available for properties with up to eight units.

The LendSure Way

It’s simple. We make loans that make sense. We’re not in-the-box lenders. Of course, there are numbers ratios, and data to consider, but we know that behind every file, there’s an individual with a unique circumstance seeking a loan. We work hard to offer our common-sense take on lending to borrowers seeking funding for the home of their dreams, another addition to their investment property portfolio, or refinancing of a currently-owned property.

Are you ready to benefit from a commonsense approach to lending? Contact us today to learn more about non-QM loans and how partnering with LendSure Mortgage Corp. can help grow your bottom line.

Contact Us: (888) 707-7811