Will the housing market in Florida continue to rise?

Throughout 2022, we expect the Florida real estate market to remain a sellers’ market. However, we will no longer see the same astronomical growth rates. The trend of homes selling for 25% to 50% more than they did two years ago in 2021 will become less likely.

The Housing Market in Florida

Looking at the current Florida housing market, we don’t see demand slowing down anytime soon, and on the supply side, residential house construction hasn’t kept up with demand for over a decade. It will take a long time to recover from the low inventory. As previously stated, the current market is based on more stable fundamentals, and a significant shift in supply and demand is unlikely to occur anytime soon. Rather, we expect the market to stabilise or return to normal.

It’s critical to understand that not all markets will rise in the same way. Let’s take a look at how saturated each market is. How much has inventory shrunk and how has the dollar per square foot changed over the years? We present key data for some of the major (larger) South Florida markets, including Coral Gables, Pinecrest, Miami Beach, and Fort Lauderdale, in the graphs below. We work in other areas and can provide you with additional information upon request, but for the sake of simplicity, we’ve decided to focus on just these four markets in this report.
Some of the graphs only show homes on dry lots or on the water. Only market segments with at least six sales in a given period are shown. It’s interesting to note that waterfront homes accounted for 50% of sales in the $3M-$5M market in 2019, but dry lot homes will account for 90% of sales in 2021.

Frequently Asked Questions

Will the Florida housing market crash in 2022?

Despite lots of new building, housing inventory will remain low in 2022, with the amount of homes for sale falling far short of demand.

Will house prices go down in 2022 Miami?

The Miami Realtors Association also stated that home price growth will likely slow in 2022. In a report released in February, the association stated that rising mortgage rates and other factors “should ease the growth of median prices” in the future.

Is Florida real estate overpriced?

In an economic study, Florida cities are among the most overvalued housing markets. TAMPA, FLORIDA — A list of Florida’s most overvalued housing markets includes two Bay Area cities.

Will house prices drop?

A renowned think group has predicted that house prices will decline dramatically during the next year. The Economic and Social Research Institute (ESRI) has predicted that prices will fall by 12% by the end of next year, with the housing market likely to remain sluggish for the next year and a half.

Is it a good time to buy a house in Florida 2022?

The market performed incredibly well for investors in 2021, but is the Florida housing market still a wise investment in 2022? According to the most recent Florida Realtors surveys, the response is a loud “Yes!” with restricted availability keeping property prices in the state high.