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  • Writer's pictureDon Mihalik

Are Home Prices in Florida Declining?

If you are considering purchasing a home in Florida, you may be curious about the current state of the housing market. In this post, we will examine the current status of the market and some of the associated concerns. We will also compare the current Florida home market to the markets of other states.


If you're looking for a cheap area to live in, Florida has one of the greatest housing markets. It offers reasonably priced housing and cheap mortgage rates. However, there are disadvantages to living in the Sunshine State.


Recently, the Florida home market has been weakening. Although it is in better form than the previous property market crash, it has not yet reached its peak. The increase in home prices is slowing, and housing inventories are falling behind demand. This has resulted in a supply shortage, which will likely continue to push up property prices.


Numerous reasons are contributing to the decline in the Florida home market. In addition to the continued issue of affordability, slower employment growth and rising interest rates are also impacting the real estate market.


More houses are entering the market, but fewer are being sold. This is excellent news for purchasers, but it may increase market competition. In a normal housing market, a six-month supply of homes is considered to be in equilibrium.


Many individuals are relocating to the Sunshine State to escape the harsh winters. They like new construction and resale properties.


However, the state's high construction costs have resulted in a dearth of cheap apartments. The shortfall has made it challenging for Florida to meet the needs of its inhabitants.


Uncertainty exists as to whether Florida's home market is experiencing a boom or a bust. There are numerous aspects that influence the performance of a market. The labor market is an essential consideration. Overall, Florida's job market is rather robust, with a 2.7% unemployment rate. Its economy is predicted to grow at a moderate rate and stay reasonably stable.


The increase in mortgage rates is another factor leading to the downturn of the Florida home market. As a result, fewer prospective homebuyers can afford the homes they desire.


Since 2005, home prices in Florida have increased by 80 percent. Nevertheless, they are lower than during the Great Recession. Nonetheless, certain regions are experiencing disproportionate price drops.


The number of foreclosures is increasing, investment returns are declining, and mortgage rates are climbing, among other indicators. Thankfully, the job market remains stronger than it was during the previous home market meltdown.


However, the affordability index of the housing market is beginning to diverge from its long-term trend. Recently, the quantity of newly listed properties has decreased. Combined with a wider distribution of foreclosures, this means that a growing number of prospective homebuyers no longer view homeownership as a viable option under present market conditions.


The housing market in Florida is turbulent. Numerous Florida homeowners are concerned about their property values. Some have already reduced their mortgage debt. However, if you are interested in home ownership, you must be prepared for rising interest rates.


The economy of Florida is broad, and the state is popular with retirees and real estate speculators. The price of homes has been increasing. However, new housing construction has lagged behind population growth.


This is a nationwide pattern, and Florida is not an exception. Recent research by TD Economics predicts that housing values in Florida will decline by 10 to 15% by 2023. Even while this is not a full-fledged recession, it may damage the Florida home market outlook.


The unemployment rate in the state is anticipated to decline, and the labor market is no longer as bad as it was during the Great Recession. These considerations should prevent a total collapse of the Florida housing market.


Home prices continue to rise, albeit at a slower rate than in the early 2000s. The affordability of housing is at its lowest level since mid-2006.


In September, the supply of single-family homes in Florida was equivalent to 2.5 months. Compared to the three months preceding the last home market meltdown, this is an improvement.

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