Florida 's real estate market is one of the most advanced and transparent property markets in the world. It is well regulated with a fully developed legislative framework and is English speaking.

Florida is known as the Sunshine State with over 300 days of sunshine a year and annual average temperature of 21 degrees C (70 degrees F). With approximately 1,700 miles of some of the best coastline in the world (with no place in the state being more than 60 miles from the coast), world class visitor attractions, the State's lifestyle and golf attractions, over 80 million people visited Florida in 2005 with 53 million visiting Orlando and central Florida alone making Orlando the most visited destination in the World.

With job and income growth outpacing the rest of the United States, Florida has tended to pull job seekers in from other states. Population growth has soared in recent years. The Sunshine State has added 1.35 million residents over the past four years, including 800,000 new residents in 2004 and 2005. The current population of Florida of just over 17 million is set to rise to over 19 million by 2010 and is projected to hit 28 million by 2028 to become the third most populous State in the United States.

The bulk of Florida's population gain comes from net inward migration, which accounts for 87% of the State's annual population increase. Most of these new residents are prime working-age adults, who are relocating to take advantage of the state's favourable employment conditions. Population growth should remain strong through the end of the decade, with gains averaging around 370,000 new residents per year.

Demographics are boosting demand for homes in other ways as well. The aging of the Baby Boom generation, those born between 1945 and 1965, has led to an increase in retirees, second home purchases and homeownership in general.

Florida has long been known as a retirement haven. Persons aged 65 and over currently account for 18% percent of Florida's population, compared to just 12 % nationally. The 65 and over age group is expected to account for 18% of the state's population gain through the rest of the decade and 39.8% of Florida's population growth in the next twenty years.

Homeownership among persons aged 65 and over is high, with 83% of households being homeowners. The high rate of homeownership among retirees is one reason why Florida's overall homeownership rate, which is currently pegged at 74%, is so much higher than that of the United States as a whole. With the retiree population expected to account for a larger proportion of the state's growth during the next quarter century, overall homeownership can be expected to rise even further.

Florida has seen some of the most dramatic gains in home prices in the United States in recent years. The median price of an existing home has increased by over 100% over the past five years.

There are five fundamental factors driving Florida's housing market:

Florida is one of the largest second home markets in the United States, with an estimated 700,000 temporary residents over age 55 spending 30 consecutive days or more there each year.

Florida, and in particular central Florida, remains the number one vacation destination in the United States and the Orlando region is the most visited destination in the world. Sales of vacation homes have been strong in recent years due to low interest rates and a weak dollar, which has helped fuel purchases from overseas.

One third of international purchases of homes in Florida chose locations in Central Florida. The Orlando area is particularly popular for British purchasers who prefer single family home units and account for one third of Florida's home sales to international purchasers.

With demand for homes running well ahead of supply, prices of existing homes have been driven significantly higher. The median price of an existing home sold in the Orlando area surged 45% in the period 2004/05 to $247,900. The price jump was the largest among the State's 21 metropolitan areas and brings the cumulative increase in home prices in the previous five years to 124%. Moreover, Orlando area housing, which traditionally has been priced well below the national average, now sells for 17% more than national average.

The increase in prices coupled with the ever present demand for housing has forced buyers to consider more cost effective locations, such as the four county region, approximately 35 miles to the west of Orlando. This region that the greatest population and price increases are expected. This is already being reflected in the rapidly increasing cost of development land in the area.

With recent increases in interest rates (while remaining at affordable levels) and an increase in development activity, it is expected that Florida's housing markets will move into better balance in coming years but sales are expected to remain strong for the remainder of the decade but not at the exceptional rates of increases seen over the past four years.

Higher home prices in Florida are not expected to snuff out Florida's housing boom. Prices are still significantly lower in most Florida markets than they are in the Northeast United States, where many of Florida's inward migrants come from.

Overseas visiors in 2006

• The primary trip purpose for overseas visitors was leisure/recreation/holiday (61.3%)
  
• The major type of lodging used by overseas visitors was hotel/motel (75.8%)
  
• The average length of stay for overseas visitors to Florida was 11.3 nights, with a median of nine nights

Source: Visit Florida Research