Is Now A Good Time To Invest In The Florida Real Estate Market – Mid 2023

June 15, 2023

The Current State of the Florida Real Estate Market

Florida remains a strong real estate market relative to many other states.

According to Florida Realtors, despite the difficulties brought on by rising mortgage rates, the state’s housing industry has remained robust. Even while the drop in sales and new listings is expected, there is some reason for optimism, given the rise in end-of-month inventory levels. The report also predicts that the Florida housing market will likely continue to be robust in 2023, with consistent price increases and ongoing house demand.

Let’s take a quick look at some of the key real estate market indicators in Florida:

1. In February 2023, Miami’s existing condo sales decreased 46.6% year-over-year, from 1,807 in February 2022 to 965 in February 2023, due to a lack of inventory and rising mortgage rates.

When comparing the total sales of apartments and townhouses in 2022, 125,494 units were sold throughout the state – 21.7% less than in 2021.
Home prices in Florida were up 0.5% year-over-year in April 2023, selling for a median price of $401,100. On average, the number of homes sold was down 19.5% year over year and there were 35,104 homes sold in April this year, down from 43,596 homes sold in April last year. The median days on the market were 44 days, up 21 year over year.

The Florida real estate market is expected to remain strong in 2023, with continued demand for homes and steady price growth. However, the market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers. It is important to note that these projections are subject to change based on a variety of factors, including economic conditions, interest rates, and local market conditions.

Is It a Good Time to Invest in Real Estate in Florida?

Based on the current state of the Florida real estate market, it is a good time to invest in real estate in Florida. According to Mashvisor’s December 2022 data, the Florida real estate market flourished in 2022 and is one of the most profitable in the US. They go on to say that despite the expected rise in prices and low inventory spurred on by the high demand for houses, the real estate market should continue to drive Florida’s economy in 2023.

Florida Realty Marketplace also suggests that Central Florida’s real estate market features some of the best places to invest now and going into 2023. The report states that “Prime real estate in Central Florida can offer a significant return on investment when you get smart about investing in the local market and protecting those investments.”

However, it is important to note that the Florida real estate market is experiencing a major shift, as reported by Houzeo. The median sale price increased by 3.2% in March 2023 YoY, and the number of homes sold has decreased. The report also suggests that the market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers. Based on their analysis of the market, they have developed the following predictions for 2023’s Florida housing market are:

Mortgage rates may stabilize between 6% to 6.5%.
Number of home sales may reduce by as much as 18.8% in Q2.
Compared to last year, home prices may stay relatively low, falling by around 2.5% in most markets
Housing affordability will remain stable.
iBuyers, such as Opendoor, will likely only buy property below market value due to their significant losses last quarter.

Investing in real estate in Florida will unlikely result in a loss as, according to Houzeo, the housing market is unlikely to crash in Florida due to low months of supply, low newly constructed housing supply, new buyers entering the market, strict lending standards, and fewer foreclosures. As such, it looks like a relatively safe bet at this time, however, you’ll always want to ensure the specific investment you are considering is a reliable choice by carrying out detailed market research.

Conclusion

In conclusion, the Florida real estate market is expected to remain strong in 2023, with continued demand for homes and steady, if not slightly reduced, price growth or reduction in different cities. The market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers. If you are looking to invest in real estate in Florida, it is important to know where to find the best places to invest, so make sure you conduct careful research and look at the historical trends before making a decision. Based on what we have explored, it does seem like it could be a good time to invest in real estate in Florida right now, in June 2023. However, it is important to note that these projections are subject to change based on a variety of factors, including economic conditions, interest rates, and local market conditions.

And if you’re preparing to invest in the Sunshine State, consider doing so with the best real estate financing terms in the business. Speak to our team at REI News to unlock the most reliable and affordable real estate loans that meet your exact needs. Contact us now to get a head start on your next real estate investment.