The Florida real estate market is pretty hot right now, with prices on the increase. This is great for sellers but not ideal for buyers.
When compared with the same period in 2021, Q1 2022 median sales prices are up over 21% with the trend expected to continue into 2023. However, with mortgage rates up about 1% from a year ago, the cost of borrowing money looks set to increase over the next couple of years.
What that means for you, if you’re interested in getting into real estate, is that now is a good time to get in, especially if you’re looking to invest in single-dwelling homes. The available stock is small and, based on the data, Florida enjoyed the highest increase nationally.
In fact, it was so good, that prices increased 50% more than in any other state.
With real estate providing an excellent hedge against inflation, it makes sense that you should consider Florida when planning your next property investment.
Which City’s Housing Markets are Booming in Florida?
So, which market is the best one to look at right now?
Tampa, situated along Florida’s Gulf Coast, had the biggest year-on-year home price increase of 32.5% in March 2022 among the 20 largest metro areas in the U.S.
Another Florida city that’s making a splash is Orlando. The home of Disney World and Universal Studios, one of the 40 major metro areas, placed first among the most improved housing markets by rising 138 spots on REALTORS’ ranking of the hottest housing markets.
What are 2022 Predictions for the Florida Housing Market?
Predictions from real estate professionals are that the housing market is going to remain buoyant for the remainder of 2022, going into the first quarter of 2023.
What might change the outlook, is if mortgage rates increase substantially.
Price Growth Could Slow due to High Mortgage Rates
Home purchasers with limited cash reserves may reconsider their purchase intentions if mortgage rates rise. This demand reduction will see some Florida markets’ price growth slow or stop. However, purchasers with more available liquidity and who can afford higher interest rates might feel more confident. They will be able to locate homes they can afford if the price increase is moderated.
Florida’s supply of new homes has lagged behind population growth for the past 15 years.
Adding to that is the rise in post-pandemic migration to Florida, which widens the supply-demand imbalance and raises property prices. Buyers consequently lack confidence in their ability to locate a home they can afford. Fewer home sales follow from this.
So, lower-priced homes will be in demand and the smaller, less popular areas within the Florida market will see an increase in demand on the back of rising mortgage rates.
The larger metros will be harder hit than the smaller areas, with remote work on the rise and the move to a slower, less big-city feel gaining traction.
But, predicting the housing market cycle is always difficult. With a multitude of factors at play, trends could change from one month to the next. This is why finding property professionals who are dialed into the market is critical to avoiding costly mistakes.
Introducing Contador America
Moses Nae, CEO of TaxLeaf, Contador Miami, and the founder of Contador America is passionate about helping business owners and investors maximize their returns.
It is crucial that you consult with a knowledgeable and experienced accountant to help guide you through the various stages of investment, especially if you are looking for ways to maximize your retirement income.
Here’s what one of our successful business owners has to say about the service and support they receive from being partnered with Contador America:
Cesar Buenavista, Doral, Fl
“I am an Account Manager with Contador America and have been working with clients for more than 6 years. The technology they provide is incredible. I have access to everything from my phone if I need it. They are very professional and provide excellent support for me and my employees.”
To help you learn more about how Contador America can assist you with real estate investment needs, stop what you’re doing right now and call us now to secure a FREE 30-Minute Consultation with one of our investment property solution experts.
+1 (954) 345-7888