According to The Economist, if Florida was a country, it would be the fifteenth-richest nation in the world, with a GDP of over $1.1 trillion. As the name implies, Lakeland has many lakes and its also an easy drive to the eastern shore which makes it a desirable place to live. price indicates that the housing market is competitive and bidding wars are becoming more common. Florida Real Estate Forecast Next 5 Years: Will it Crash? Considering the most recent twelve months tracked by them (2021 Q3 2022 Q3), Florida's home appreciation rates continue to be among the highest in the United States, at 26.35 percent. 185 Plains Road - 3rd Floor - Milford, CT 06461, Copyright 2023 Total Mortgage Services, LLC. If you want to buy in this market, nows not the time to buy. Norada Real Estate Investments However, Leer also noted that housing and homeownership remain a top priority for many consumers. Thats quite a bit higher than where we are right now, in late March, with rates averaging around 3.0%. CoreLogic Chief Economist Selma Happ suggests that thanks to a combination of depleting housing inventory, easing mortgage rates, and improved economic data, real estate values could stabilize in 2023. Still, rising interest rates will put downward pressure on prices. Floridas housing market mirrors larger national trends, albeit with some regional variation. There was a 96.6% sale-to-list price, down 2.4 points year over year. While recent inflation, supply chain bottlenecks, and revived interest in the South Florida real estate market have added gasoline to the fire, home affordability has long been a problem for South Floridians. Housing Market Predictions for the Next 5 Years. The average rent in 2020 was $1,240 (a rent multiplier of .61%) and increased to $1,760 today (a rent multiplier of .58). This is partially due to tighter lending laws coming from the financial crisis. The majority of the increase in listings has occurred in the high-end or luxury portion of the market, despite the fact that overall inventory is growing. Condo median prices have increased in 134 of the last 139 months. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. According to a Homelight poll surveying real estate agents, the sellers market that emerged in 2022 is beginning to fade headed into the new year. Florida's real estate market has seen unprecedented price rises during the last few years, as a result of a lack of supply and high demand. The median price of a home in the United States is currently $386,500. Florida attracts millions of tourists annually. It also included a panel of Realtors who use Florida Realtors SunStats resource regularly, sharing how it helps them in their business. Investors are far more likely to have the cash on hand to purchase a house, whereas the average homeowner requires a mortgage or other type of financing. According to recent census data, the Sunshine State added over 400,000 additional people between July 2021 to July 2022. Investor Junkie does attempt to take a reasonable and good faith approach to maintain objectivity towards providing referrals that are in the best interest of readers. Florida is a popular place to live and a destination where retirees continue to flock. (Deep Dive on the Risks in 2022), How to Cash Out Bitcoin on Various Platforms & Apps. Research shows more consumers are finding it difficult to make ends meet at the end of the month, and the share of adults able to save each month continues to shrink.. Although industry experts expect that the market will eventually recover, as it always does, these increased property prices may persist for some time. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. In January 2023, 11.0% of homes in Florida sold below list price, down 20.7 points yearover year. 50% of sales were above and 50% of sales were below) was $402,500, +15.7% YoY. There was a 96.6% sale-to-list price, down 2.4 points year over year. Panelists were Peter West, broker/managing partner, Bishop West Real Estate; Kara Wisely, broker associate, Berkshire Hathaway HomeServices Florida Realty; and John J. Adams, president, Adams, Cameron and Co., Realtors. Jacksonville is a growing metropolitan Florida city with a population of 1,533,796. It was followed by the $300,000 $399,999 segment which reported 43,683 sales. There were only 31.4% of homes that had price drops, up from 12.0% of homes in January last year. Florida home values have grown by 19.9% over the last twelve months and the median days to pending is 27. A more conservative cohort predicts a more modest 10.3 percent growth in the same period. Updated January 2023: By searching, you agree to the Terms of Use, andPrivacy Policy. A lot of our Florida markets are way overpriced compared to the rest of the country, said Ken H. Johnson, a real estate economist at the Florida Atlantic University College of Business, who is a co-author of the study. The population is around 124,000. Hot homes can sell for about 1% below the list price and go pending in around 16 days. //-->