Florida has one of the hottest US housing market forecasts for 2022 and beyond. In January 2023, there were 135,532 homes for sale in Florida, up 34.4% year over year. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Homes that sold above list price likely received multiple offers. More supply is coming eventually: The total number of homes under construction, including both single-family . Daniel Kline May 21, 2022 3:54 PM EDT The United States has experienced an unprecedented housing boom caused largely by the Covid pandemic. Key Market Stats for the Florida Housing Market: As of the latest compiled housing report with data through Sept 2022. Sure, these lists can be subjective. 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. In both 2020 and 2021, Florida ranked as the number one state for net migration in the U.S. Thousands of homeowners were impacted by the hurricane that swept through southwestern Florida, and potential buyers and sellers alike may be wondering what impact this will have on the local real estate market (if any). The average home value as of August 2021 is $231,326. The number of property listings active at the end of the year was 65,786, +116.8% YoY. More than 6.7 million people live in the region, which encompasses more than 6,000 square miles and three counties: Miami-Dade, Broward, and Palm Beach. Weve taken a look at the numbers, so lets shift into seeing what some real estate gurus are predicting about the Florida housing market heading into 2023. . However, by partnering with a top agent, who understands your local housing market, you can navigate the market with ease in 2022. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Here are the states with the most inflated housing markets as of the first quarter of this year. The economy is active and varied, with dozens of international corporate headquarters. The largest cities in Southwest Florida include Fort Myers, Cape Coral, Naples, East Naples, and Port Charlotte. Norada Real Estate Investments What does South Florida real estate market look like in 2022? The average sale price of a home in Dunedin was $487K last month, up 26.4% since last year. South Florida, sometimes known as the Greater Miami Area, is the seventh-largest metropolitan area in the United States and the second-largest in the southeastern United States, trailing only the Washington-Arlington-Alexandria MSA. These signal that sellers are feeling the pullback from buyers. Predictions for Florida Real Estate Market by 2022 Ever wondered what will happen to the Florida real estate market in the next few years? Sharing this article could lead to the life change that someone needs to change their family tree for the better! The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Thats because, for housing prices to totally plummet, inventory has to go way up. Population growth Among the nation's 414 largest housing markets, Moody's Analytics' forecast model predicts that 183 markets will see a year-over-year home price increase in 2023. All rights reserved. Zillow released its predictions for 10 hottest housing markets of 2022 and Orlando is ranked No. According to recent census data, the Sunshine State added over 400,000 additional people between July 2021 to July 2022. His professional experience branches across magazine writing, PR, social media, and content marketing. Home prices in Florida are increasing, but not rapidly. Median home price $392,700 - 15.1% up from 2021. Cash Sales can be a valuable measure of the level of market participation by investors. Laguna Niguel, CA 92677, Copyright 2018 Norada Real Estate Investments, florida real estate forecast next 5 years. It always takes time to build, but were building at a pace where, maybe for every two houses we need, were building one. In 2022, the supply of existing single-family homes increased to 2.7 months, while the supply of existing condo-townhouse properties increased to 2.8 months. It was down 0.1 percentage points from the November 2022 rate, and down 1.0 percentage points from a year ago. Historically, inventory grows six months after interest rates rise, but todays market is unlike any other. If youre waiting for the housing market to crash in Florida or anywhere else, youre going to be waiting for a while (like, probably forever). Updated: Feb. 28, 2023 at 3:58 PM PST. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations. Recent months have seen month-on-month declines in the Florida median sale price. Florida homeowners are much wealthier due to the rise in property values across much of the state, but not as affluent as they may believe, Zandi said. Florida real estate market predictions 2021 and 2022. Florida home prices are up 15.1% year over year, with a median price of $465,000. Visit HomeLights 2022 Housing Trends Hub for information on how to navigate a shifting market whether youre a seller, buyer, or homeowner. In January 2023, 11.0% of homes in Florida sold below list price, down 20.7 points year. He suggests, Do one of the two: Own, or rent and re-invest, but dont rent and spend the extra on beer and cookies.. The number of listed properties that went under contract in 2022 was 290,375, -21.1% YoY. Because of the available new jobs in Tampa, the unemployment rate is down to 2.7%, making the city one of the best places for finding employment opportunities. Nicole Bauchad, economic data analyst for Zillow, is predicting prices will rise as much as 12% year over year from July 2021 to July 2022. Higher mortgage rates can discourage sellers from listing their homes - they often dont want to drop their lower interest rate for a higher one, and a low supply of homes means buyers have to compete more for homes, keeping prices up. TREC:Info About Brokerage Services,Consumer Protection Notice. Tour Recently Sold Homes & make offers with the help of local Redfin real estate agents.Justin Pirie. It may be a hot business right now but we cannot tell what exactly will happen. It also wouldnt be a bad idea to line up a new place to livethough you never want to buy a new house before selling your old one. These price increases are problematic for Floridians for a variety of reasons. Our forecast predicts total inventory to grow by 4.0% in 2022 overall, and by 22.8% in 2023. Lakeland ranks 12th nationally, and second in the state, with homes overvalued by more than 53.2%. According to a newly released forecast from realtor.com on how the housing market will fare in 2022, home prices are expected to rise almost 6% in South Florida over the next year. January 2023. Here's Florida's statewide housing market data for single-family homes as reported by Florida Realtors for the previous year. The benchmark for a balanced market (favoring neither buyer nor seller) is 5.5 months of inventory. Last year, statewide inventory increased by 116.8% for existing single-family homes and 65.0% for condo-townhouse units. 44 days Pricing page - selling-florida.com The median number of days between the listing date and closing date for all Closed Sales during the month was 56 Days, 1 day more than the previous year. There were only 31.4% of homes that had price drops, up from 12.0% of homes in January last year. A post-pandemic world necessitates that the state of Florida deal with the fact that pricey housing can in certain respects impede economic growth and have an unequal impact on critical segments of the population. The median price of an existing condominium rose 14% annually, from $263,125 to $300,000. . 50% of sales were above and 50% of sales were below) was $402,500, +15.7% YoY. Condo median prices have increased in 134 of the last 139 months. January 2023. Florida home values have grown by 19.9% over the last twelve months and the median days to pending is 27. The research of 107 U.S. rental areas, published on June 6 and based on April data, discovered that ten of the country's most overpriced rental markets are in Florida. In January 2023, 11.0% of homes in Florida sold below list price, down 20.7 points yearover year. And that leads to fewer home sales. The average rate on a 30-year loan fell to an all-time low of 2.93 percent in . The rental prices in the nine other Florida markets included in the research increased by more than 20 percent annually, and they all ranked in the top 15 out of 107 areas for this criteria. I believe 2023 will look more like the traditional housing market years of 20182019 in Florida as supply and demand become more balanced.7. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. We still have a huge influx into Florida from people from California, New York, New Jersey, and all over the place.. While rising home prices may be terrible news for many homeowners, it's good news for rental property investors, helping to explain why rental growth and demand in South Florida are so high. We started this year off with unprecedented sales, says Samaan. 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. At thenational level, home listing prices increased around 8.4% in December 2022 compared to the year before.4 During that same time, these three states rose to the top with the highest home price increases year over year: Compared to those big numbers, Floridas 9.1% growth in listing price seems pretty small! All rights reserved. Florida mortgage rates are rising Florida mortgage rates are climbing in 2022. Heres what Florida home sellers, home buyers, and homeowners can expect in 2022: Thinking about selling your house in Florida? The average sale price of a home in Marco Island was $1.01M last month, up 33.8% since last year. Making real estate market predictions one year ahead already isnt easy, and making predictions five years ahead is even harder. Last Update: 10:31 am CST Feb 6, 2023. Anything higher is traditionally a buyers' market and anything lower is a sellers' market. When the COVID-19 pandemic hit in March 2020, many thought the housing market would come to a complete halt. There are currently 135,532 residential homes for sale in the United States. Miami existing condo sales decreased 50.2% year-over-year, from 2,077 record-breaking December 2021 to 1,035 in December 2022, due to a lack of inventory and rising mortgage rates. The number of newly listed homes was 37,863 and down 8.6% year over year. Since then, things have definitely calmed down both in Florida and all over the country. It was $306,500 for condo-townhouse units, up 21.6% year on year, according to the latest housing data from Florida Realtors. 4. An influx of remote workers post-COVID, as well as people fleeing from high cost-of-living metro areas in states like California and New York, contributed to thousands of bidding wars taking place across the Sunshine State. In fact, Miami-Dade active listings are still down 49% versus pre-pandemic numbers (year-end 2022 vs year-end 2019). Although builders are increasing production, the supply of new and existing homes will remain below the level of demand. It was a growth of 1.9%, bringing the total population to 22,244,823. According to Trading Economics, Floridas All-Transaction House Price Index streaked to record highs in January of 2022. Buyers may be wondering whether it makes sense to wait to buy, while sellers may be wondering whether it makes sense to hold onto their properties. Fannie Mae forecasts that the median price of a previously owned home will surpass $400,000 by the middle of 2023. This diversified economy can help insulate the state from economic downturns, which can be beneficial for real estate investors. In short, the Florida market will continue to be hot in 2022. Job Market: South Florida has a diverse economy, anchored by industries such as finance, healthcare, and real estate. Hot homes can sell for around the list price and go pending in around 31 days. Are there enough homes for sale to meet buyer demand? Overall, the Florida housing market is strong and is predicted to remain so in the next five years. 30251 Golden Lantern, Suite E-261 Austin has been previously ranked by Zillow as the hottest housing marketbut it slipped for 2022 by several spots. >>Explore Roofstock's Southwest Florida investment properties here. The median home price in Florida in 2020 was $245,169 which rose to $366,301 in 2022. Florida has had some of the strongest housing appreciation rates in the country over the past decade. They can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. What Documents Will I Need for Taxes if I Bought a House Last Year? Whether or not the country enters a recession, the housing market appears to be in good shape for the foreseeable future. Here are a few factors that could drive Florida housing market trends in 2022: We started this year off with unprecedented sales.