¿When housing prices in Florida should come down?
We all wondered ¿when housing prices in Florida should come down?
After overcoming the pandemic, Florida’s housing market remains expensive and does not seem to be improving.
Because the demand for housing, the market will continue with an upward trend until the end of the year.
The reasons besides the shortage of housing are the low interest rates and the increasing migration to the state.
We expected that this rhythm will slow down by the end of the year and that the increase will be less than 3%.
Therefore, many are asking themselves, ¿is it the right time to buy or to sell the property?
¿When will the market slow down?
As long as demand outstrips supply, the market will continue to boil.
Only until the end of the year, whether interest rates rise or some areas of the market stabilize.
A stable inventory should be greater than a 5-month supply, and for now we have less than 5 weeks of supply.
That is why we do not expect a slowdown until before the end of the year or the begining 2023.
For now, many confident buyers are coming to Florida, thanks to vaccination and removal of blockades.
These make further stimulating the market.
¿When should prices come down?
As long as the shortage of housing inventory does not improve, we should not expect a significant decline in prices.
Much less anything like the great real estate collapse of a few years ago.
If (mortgage) interest rates increase, the market may stabilize a bit and we may see some decline in home prices.
Because of these low interest rates, buyers are acquiring properties that they would not have been able to buy before.
¿Will new construction help lower prices?
As long as builders can catch up on their delivery schedules, due to the current shortage of supplies and labor, prices could begin to stabilize.
The more inventory, the greater the affordability, therefore, the better the business opportunity and the better the prices.
What we see is that there is more supply in multifamily than single-family and this additional inventory should help lower prices.
On the other hand, when the federal moratorium on evictions ends, we expect the market to calm down a bit, as many landlords will be able to evict their delinquent tenants, and although they will not be able to recover their past-due rents, they will be able to rent better or in many cases will want to sell, which will increase supply.
¿What does the market show us?
We see that with rents increasing so much, and the supply of properties for sale decreasing, many owners are deciding to keep their properties, and many tenants are willing to buy houses instead of renting.
All these variables generate uncertainty, but in the end, it will always be better to be part of the game, than to see how the market attracts new and potential buyers.
As the old adage goes, “not so many can be wrong”.
That is why our invitation is to seize the moment and take the opportunity to invest in the most dynamic market in the nation.
Invest in Florida, invest with us, let us advise you and together we will achieve your dreams…
Call us (305) 930-1160 or visit us at 605 Lincoln Rd Suite 250, Miami Beach FL 33139