South Florida usually has a thriving housing market, but that doesn’t always mean it’s a great market for buyers. After all, South Florida is home to some of the best places to live in the world. But that also means it can take some planning if you want to live here.
Here’s what you need to know about the South Florida housing market, why prices are high, and if they’re likely to come back down any time soon.
One of the biggest factors impacting the housing market in South Florida is the desirability of homes here. Not only are the neighborhoods and our houses and condos themselves in high demand, but so are the weather, the proximity to Florida’s beaches, and the culture.
Lower taxes are also a big reason more people are moving to South Florida, especially people coming from higher tax regions like New York and California. All told, almost a thousand new people are looking for South Florida homes every day.
With all that demand, any region’s housing inventory would be under strain. However, like a lot of other destination markets, like Colorado or Washington, South Florida’s housing inventory has already been under stress for a long time.
That means that the added stress from increased demand combined with construction slowdowns during the pandemic, and South Florida has even less housing inventory relative to its demand than many other places.
In any housing market, low inventory and high demand are likely to produce higher prices and a sellers’ market, just like the one we see in South Florida in 2022.
Most of the time rising interest rates cool off housing markets and push prices lower. In South Florida though, the Fed raising interest rates doesn’t seem to have done much to change housing prices.
That’s probably mostly because the demand is so high for housing, and inventory can’t quite match the need for homes.
That means that it’s not terribly likely for housing prices to start going down anytime soon. Instead, look for signs of increased construction or decreased demand as the first signs the market is going to cool off. That, in all likelihood, won’t happen this year.
Of course, there’s no guarantee that housing costs will stay high throughout 2022, market variability is still very much at play. Just that we expect the overall trend to be stable or rising housing prices for the rest of this year unless there’s a significant shakeup in the market.
Anyone who remembers the lessons of 2007 and 2008 will naturally be worried about the rumors that there might be a housing bubble in the United States.
However, Business Insider predicts that we’re not so much in a housing bubble as we’re experiencing housing conditions very different from all the conditions in our recent memory. Prices are high, but not artificially so. There are simply a lot of competing pressures on the housing market, most of which are driving prices up.
Looking to buy in South Florida and want some help navigating this hot market? Great Florida Homes can help. Since we already have our own inventory of listings, we can help match our customers with great homes no matter what the housing market looks like.
Looking to sell? We have good news there too. We help represent sellers and know the market well enough to help you get the best possible offers for your house or condo.
Contact Great Florida Homes to help with all your real estate needs.
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