The Orlando Sentinel reported that real estate agents and real estate investors are increasingly willing to pay higher prices for properties because of a shortage of available properties.
In 2016, real estate was valued at $1.7 trillion and the average price of a home was $1,000,000.
In Florida, the median home price in 2016 was $5,500,000 and the median sale price was $2,500.
Real estate agents are reportedly offering to sell properties at a higher price than other buyers because they believe they have more leverage in negotiations.
A recent article by Forbes.com titled The Most Important Real Estate Market In America Is Now Florida article Real estate prices have surged in Florida in the past year.
The average price in Florida rose 14.4% to $3,500 per square foot from $2.7 million in 2016, according to data from Zillow.
The median price in the state in 2016 stood at $2 million.
Real Estate Today, a real estate industry publication, reported that Florida has become a hotbed for real estate investment.
The number of active listings on Zillows Real Estate is up over 80% from last year and a new record number of new listings is now opening for sale, according the report.
The Zillower report also noted that the number of properties that have been listed for sale has surpassed 100,000 listings, making it one of the fastest-growing states for the number.
According to the National Association of Realtors, Florida has the second-highest number of newly available properties in the country, with nearly 11 million.
The top five states for new listings are New York (9,000), California (8,500), Florida (7,500) and Illinois (6,500).