Key Market Stats for the Florida Housing Market: As of the latest compiled housing report with data through Sept 2022. Additionally, Florida's job market is diverse and growing, which attracts new residents and supports the demand for housing. If you're a seller, this is wonderful news since it implies property values are rising and there isn't much selling competition, giving you the luxury of selecting from the best offers on your schedule. And then. Zillow released its predictions for 10 hottest housing markets of 2022 and Orlando is ranked No. These predictions assume a relatively shallow recession that stops and starts in 2023 and inflation that is under control by 2024, allowing mortgage rates to decline, which will boost home affordability. Copyright Houwzer, Inc. 2023. On average, the number of homes sold was down 38.1% year over year and there were 27,233 homes sold in December this year, down from 43,985 homes sold in December last year. Professional and business services (+53,400 jobs, +3.6 percent). However, high mortgage rates are pushing a lot of buyers out of the market, which can present opportunities for those who are staying in but it will also moderate the rate of appreciation over the next twelve months. Top 5 Metros in Florida with the Fastest Growing Sales Price. |. Florida home sales dropped in most price segments in 2022. It's predicting U.S. home prices will fall 7% by the end of 2023. Lakeland ranks 12th nationally, and second in the state, with homes overvalued by more than 53.2%. The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Miami-Dade County single-family home median prices increased 1.1% year-over-year in December 2022, increasing from $525,000 to $530,900. Hot homes can sell for around the list price and go pending in around 33 days. With everything from supply chain shocks to rising mortgage rates, inflation, and more rocking the Sunshine State, the Florida real estate market could be in for dramatic shifts this year. However, by partnering with a top agent, who understands your local housing market, you can navigate the market with ease in 2022. Higher mortgage rates may cause unprepared house buyers to postpone their purchases. . All rights reserved. While closed sales decreased over last year and homes stayed don't he market much longer than last year, average home prices increased although median home p. The . This can lead to strong returns on investment and can make it easier for investors to purchase multiple properties. An imbalance between demand and supply has fueled rapid home appreciation across the state. Lower supply and higher demand create higher prices. As of October 2022, the median home price in Florida was $402,000 according to Florida Realtors. Skip to main content . Some local experts expect no cool down One of the big questions looming as we head into the new year is whether the Florida. They. All rights reserved. In the Fort Myers region, rental expenses increased the most year-over-year. Trade, transportation, and utilities (+82,700 jobs, +4.4 percent). Back in February 2020, the Fed owned $1.4 trillion in mortgage-backed securities, and the number was falling rapidly. 3. In March 2021, Freddie Mac shows that the interest rate on a 30-year fixed mortgage was 4.17% on average, however a year before that the interest rate averaged only 3.08%. U.S. News & World Report announced its rankings of the most and least affordable states for housing and total cost of living. Rates may come down, but inflation and recession conditions can keep many buyers away from the closing table - and there is no guarantee that the mortgage rate will drop by a significant degree. That's down 2.9 percentage points from last. While 5% feels scary, its still extremely low when you look at the trend for 30-year fixed-rate mortgages over the years, points out Samaan. Hot homes can sell for around the list price and go pending in around 8 days. Avoid appraisal gaps by putting in offers that reflect the homes true worth. The positive 2022 prediction for investors is that would-be homebuyers will still likely be paying top dollar for homes. Subscribe to get our top real estate investing content. There are several factors that drive housing demand in South Florida: Climate: South Florida has a warm, tropical climate that attracts many retirees and snowbirds, who are looking for a place to escape the cold weather during the winter months. The average sale price per square foot in Marco Island is $610, up 2.8% since last year. All rights reserved. Forecasts like that are great for sparking discussions, but you should never base your plans on them. Were just not building fast enough, explains Dr. Johnson. The strong demand from these buyers helps to drive up housing prices in the region. In January 2023, 11.0% of homes in Florida sold below list price, down 20.7 points yearover year. Two data points favoring home buyers are the overall decline of sales price to list price, as well as increased days on market. One forecast predicted that the average rate for a 30-year fixed home loan could climb to 3.6% by the end of this year. Here's why you can expect it to remain popular. However, Dr. Johnson doesnt believe housing prices will free-fall like they did in the last housing crash. The average sale price per square foot in Sebastian is $209, up 5.0% since 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. Tourist demand can remain consistent throughout economic downturns, making vacation rental properties more market-resilient. The median home price in Florida in 2020 was $245,169 which rose to $366,301 in 2022. In terms of monthly sales, December 2022 sales in Palm Beach County declined 40.2% year-over-year, from 3,062 to 1,812. Predictions for Florida Real Estate Market by 2022 Ever wondered what will happen to the Florida real estate market in the next few years? Subscribe to get our top real estate investing content. Median sale price: $447,500. Homes that sold above list price likely received multiple offers. Theycan also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. 1. When producing statistics on Florida's housing affordability, experts compare median house prices to median family incomes and mortgage interest rates. Median Sold Price By Bedroom Count Median Sold Price Compared To Nearby Cities According to the financial services business Moody's Analytics, a majority of Florida's metropolitan regions are overpriced by more than 20 percent based on these parameters, which apply to two dozen metropolitan areas. In January 2023, there were 135,532 homes for sale in Florida, up 34.4% year over year. Filed Under: Growth Markets, Housing Market Tagged With: florida housing market, florida housing market crash, florida housing market forecast, florida housing prices, florida real estate forecast next 5 years, florida real estate market. In the eight or nine Florida metros where we measure, what we see is that prices are significantly above where they should otherwise be, based on a history of prices, he says. The average sale price of a home in Dunedin was $487K last month, up 26.4% since last year. However, if your financial plan depends on selling your home within the next couple years and reaping the benefits of fast-paced appreciation, you may want to think again. Remember what the housing market was like during and after COVID-19 shutdowns? Florida's real estate market also has the most homes for sale in the Nation, with 82K on the market. Whether you plan on selling, buying, renting, or owning in Florida, you can expect the market to morph in 2022. total sales in dollars divided by the number of sales) was $562,442, +11.3%. The whole market right now is sort of waiting for the signal that inflation is subsiding and we just havent seen that yet.". Single-family home sales decreased 45.1% year-over-year, from 1,356 in record-breaking December 2021 to 744 in December 2022, due to a lack of inventory and rising mortgage rates. In August, the median days to close in Florida increased by 2% month-over-month. Houwzers Chief Technology Officer, Greg Phillips, was recently interviewed by MarketWatch and had this to say about the future of mortgage rates: Mortgage rates will likely continue to rise until we start to see data showing that inflation is under control. We are going to see some relaxing or easing in prices, but were not going to see a great drop unless or until we see more supply available, he said. There are currently 135,532 residential homes for sale in the United States.. Florida Realtors closely monitors market trends, news and forecasts that impact the state's real estate industry and Florida's economy. The average homes in North Miami sell for about 4% below the list price and go pending in around 59 days. It's no surprise that Zillow has ranked Tampa, Florida, as the top real estate market in the United States in 2022. A low or shrinking percentage of homes selling above list price suggests that the market is becoming less competitive. Since then, things have definitely calmed down both in Florida and all over the country. There are currently 135,532 residential homes for sale in the United States. The average rent in 2020 was $1,240 (a rent multiplier of .61%) and increased to $1,760 today (a rent multiplier of .58). However, the number of active listings is still close to 26% lower than pre-pandemic market conditions three years ago. Now that rates are up, buyers have to opt for smaller homes - and sellers contend with fewer buyers. There were 271,000 jobless Floridians out of a labor force of 10,761,000. Experts expect prices to roll back from their peak, but high demand for houses will keep prices from dropping too wildly. Here's a look at Florida's housing market numbers from Q4 2022 (October-December) compared to Q4 2021: Florida Housing Market* Q4 2022. **Median Sale Price refers to the midpointhalf the homes were sold for more, half for less. It may be a hot business right now but we cannot tell what exactly will happen. Homes in Venice receive 2 offers on average and sell in around 23.5 days. However, it is possible to predict probable outcomes using data and trends. Dont treat real estate as purely an investment: it should be first and foremost your home. Want to discuss your options with an experienced local Realtor? Florida is now America's fastest-growing state. 30251 Golden Lantern, Suite E-261 Florida home values have grown by 19.9% over the last twelve months and the median days to pending is 27. Here are a few things to plan for throughout the rest of 2022: If youre interested in buying a Florida home in 2022, there are a few things to prepare for: First-time home buyers in Florida may feel intimidated by the rumbling market, but knowing what to expect can calm your nerves. However, the state's housing market recorded higher median prices and a larger inventory (active listings) compared to a year ago. In December 2022, Miami-Dade County and Monroe County had the states lowest unemployment rate (1.4 percent each). While it may seem like that's a small drop in the rent multiplier for Florida, it's actually on par or better now. Overall, the Florida housing market is strong and is predicted to remain so in the next five years. The U.S. housing market is undergoing a rebalancing. 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. In fact, Miami-Dade active listings are still down 49% versus pre-pandemic numbers (year-end 2022 vs year-end 2019). However, like the rest of the United States, growth plummeted to historic lows during the initial years of the pandemic until rebounding last year. Change in Typical Home Value From Last Month. ***Median Time to Sale is the number of days between the listing and closing of a home salehalf of homes selling this quarter took more time to sell, half took less. Anything higher is traditionally a buyers' market and anything lower is a sellers' market. Many are waiting, hoping that rates will fall a point or two - allowing them to save $100 or more on their monthly mortgage payment as a result. For now, othermortgage experts are forecasting a wide rangeof potential rates for next year. Filed Under: Growth Markets, Housing Market Tagged With: Housing Market Forecast, housing market predictions, South Florida Housing Market, South Florida real estate market. 1. Inflation and high-interest rates remained an issue for purchasers in the Florida housing market in 2022, according to the latest housing data from Florida Realtors. For a fast and easy way to find top-notch Florida agents we trust, try our RamseyTrusted program. Some experts believe those rates will hit 7% in 2022. Refinance activity is expected to drop by $1 . And we believe that by the end of the year, the days on market will have increased significantly. The BOJ continues to buy bonds to keep the 10y yield under 0.5%, but this is becoming increasingly futile as other yields around the 10y point are pulled higher, leaving the 10y JGB's yield looking anomalous. Samaan says that home sales in Florida are shying away from recent highs, and she expects Florida home sales to flatten out throughout 2022. Data from the University of Florida's Shimberg Center for Housing Studies show that prices in Miami-Dade County, home to Miami, Miami Beach, and other municipalities popular with new arrivals to the state, havereturnedto levels not seen since the mid-2000s housing boom, a period of intense real estate speculation in the region that forced millions into foreclosures in the aftermath of the Great Recession. Whether or not the country enters a recession, the housing market appears to be in good shape for the foreseeable future. Landlords will continue to hike rents until additional rental units are developed, pricing off many middle-class customers who previously rented because they couldn't afford to purchase. 2023 Florida Real Estate Market Trends Since early 2022, prices have dropped slightly in some areas as interest rates have risen. Surprisingly, the data may suggest the opposite of what one might assume - historically, real estate in hurricane-affected regions has actually appreciated above the national average following a storm,according to Forbes. Call us at (239) 920-8799 or email info . Some experts believe those rates will hit 7% in 2022. This is partially due to tighter lending laws coming from the financial crisis. 2. The average sale price per square foot in Venice is $288, up 14.5% since last year. Hot homes can sell for around the list price and go pending in around 6 days. Within Florida, Tampa Bay has one of the most overpriced housing markets in the nation, according to new research from Florida Atlantic University. Here's what they're saying: Mortgage rates will likely be a big part of buyer/seller decisions on how to move forward. Discover our growing collection of curated stories on Washington State. So there is increased competition (due to people having to leave damaged homes) accompanies by a decrease in inventory (homes that have been too damaged for habitation cant be sold yet) which leads to higher prices. The number of Closed Sales in 2022 in which buyers exclusively paid in cash was 92,051, -12% year-over-year. On average, the number of homes sold was down 35.4% year over year and there were 21,302 homes sold in January this year, down 32,956 homes sold in January last year. How is the real estate market in Florida? Three Florida cities are in the top 10. . 60 Questions for Homebuyers, How to Tell If You Should Repaint Your House Before Selling It, Floridas All-Transaction House Price Index, average rate for a 30-year fixed mortgage, "Housing Shortage Isnt Just a Coastal Crisis," Florida Realtors (July 2022), "Mortgage Rates Forecast For 2022," Forbes (August 2022), "Todays Florida Mortgage Rates: What to Know Before Making a Florida Home Purchase," NextAdvisor (August 2022), "Executive Summary" Demographic Estimating Conference (July 2022). In January 2023, home prices in Florida were up 6.0% compared to last year, selling for a median priceof $386,500. They . Since the 1940s, Florida's population has increased year after year, often outperforming the national average. Continued low interest rates Interest rates will remain low for the foreseeable future, including throughout 2022. Borrowers are in considerably better shape, as seen by their improved credit scores. This can lead to higher net returns on investment and can make it a more attractive option for real estate investors. These numbers are far above the national median of 9,808. For the future, if youre thinking about holding on or waiting, I think youre still in a good place and the market is still strong.. Our expectation of 7.6 percent growth in 2022 is still considerably higher than the average pace of 5.4 from 2012 to 2019. So how is the market looking at the start of 2023? (By the way, a 20% down payment is best because it means you wont have to pay for private mortgage insurance.).