2022 Q4 Central Florida Housing Market Trends & Predictions
The first three quarters of 2022 have been a whirlwind of growth for Central Florida. Home prices climbed a steep hill, but in the next quarter, some areas may begin to expect a small decline or plateau. It can be difficult to navigate the changes occurring in the housing market, but Florida Realty Marketplace’s experts are equipped to help you make a decision that yields the most benefits.
How Is the Central Florida Real Estate Market?
Florida’s market has been hotter than most in the last year, with Central Florida’s Tampa experiencing one of the biggest year-over-year changes in home prices between 2021 and 2022. Orlando’s listing prices have gone up by about 20% in that same time. Home values in Orlando have seen growth, too, with an average appreciation rate of around 136% for a single-family home.
These trends are tapering off a bit, but we are nowhere near a Florida housing market crash. Interest rates for mortgages have increased, leading to a dip in the population of willing buyers and investors. However, as home prices are adjusted accordingly and inventory rises, the market will balance out.
Even as Central Florida’s real estate market trends towards something a little more balanced, certain areas will continue to see growth, even if that growth is unlikely to be as steep as we saw earlier this year. Popular neighborhoods in metropolitan areas like Orlando, Tampa, and St. Petersburg are forecasted to bring in even more new transplants. The main difference is that homes will take longer to sell, as higher interest rates will result in fewer investors.
Will Florida Housing Market Go Down In 2022 - 2023?
The Florida market remains a hot one, even as it bends slightly towards balance. A balanced market means that buyers have a little more choice when considering home purchases. Sellers do have a little bit more control still, although rising interest rates are predicted to displace some of that control to buyers.
Inventory in Florida has trailed behind the demand for several years. The gap between supply and demand widened even further as more people migrated to Florida during and after the pandemic. Many would-be buyers are aware of this and so may be hesitant to buy. However, this could actually make the market healthier in the long run since no matter what, people are still going to need to buy homes. The only difference now compared to the peak of the housing boom is that houses may get fewer offers from more serious buyers.
One thing that is unlikely to happen is a significant decrease or increase in prices during the coming months. 2022 has been a period of significant job growth, which, when combined with the lagging inventory and pandemic-related migration, housing continues to be in demand.
For those worried about a potential market crash, be assured that 2022 is nothing like 2008. Stringent restrictions regarding interest, loans, and financing have been implemented to prevent anything like the 2008 crisis from happening again. Across the country, including Florida, lowered risk for both lenders and borrowers has made purchasing a home safer. The result is a more balanced market that benefits both buyers and sellers. A crash is very unlikely to occur.
Central Florida Housing Market Strengths
When the pandemic first hit the United States, over 35% of workers began working from home full time. As the workforce grew used to remote work and realized that they were in it for the long haul, many began reassessing their locations. No longer was it necessary to live near the office; instead, it was possible to keep your job even if you lived hundreds of miles away.
Beaches, sunshine, and a reputation for friendly neighbors made Central Florida real estate especially desirable. What could beat logging into the staff meeting from the beach?
That is just one of many reasons why Florida’s market has been so robust for the past year. First-time buyers in Florida are increasing along the same trend as the rest of the country. Compared to 2006, there is a nearly 20% increase in the number of people between the ages of 25 and 34 who may be willing to invest in a home.
Some of the hottest markets in the state are in the Central Florida region. Tampa tops the list, reaching one of the highest rates of growth in the country between 2020 and 2022. St. Petersburg, Orlando, and Clearwater follow closely behind. The market is likely to stay strong in these areas for a long time coming.
Even smaller cities are experiencing the benefits of a hot market and are welcoming more new residents than ever. The relatively small cities of Melbourne and Lakeland, for example, are bringing in affluent buyers from all over the country. These buyers tend to be looking for a more affordable cost of living as well as homes that offer a little bit more room to grow.
Is It A Good Time To Buy Or Sell A House In Florida?
Should I Sell?
There has never been a better time to list your home than right now! There are a few reasons why.
Although it is true that home prices are beginning to decline slightly, the housing market in Florida is not quite “cooling off” – due to its popularity, the market in Florida is unlike that of any other in the country right now.
Inventory in Florida continues to lag behind demand. Due to this, new listings tend to garner a lot of interest quickly.
Due to the appreciation of homes in the region in the past few years, and depending on when you bought your home, you could be looking at an enormous profit margin from the sale of your home. Florida Realty Marketplace has a handy calculator you can use to determine your home worth so that you can make plans!
Should I Buy?
If you hope to be one of the many new residents of Central Florida, you will be in good – but competitive – company.
For better or for worse, buying a home has never been more expensive. More buyers are being denied at least once for a mortgage before approval. However, don’t let these worries stop you.
Though right now inventory lags, experts expect builders to catch up now that most areas are back to a pre-pandemic normal in terms of new houses being built.
Most buyers are buying homes that are less expensive than what is normally typical at this time of year.
Both buying and selling are difficult decisions that require consideration of many factors. Florida Realty Marketplace is staffed by compassionate and knowledgeable experts who can help. Contact us today!Posted by Florida Realty Marketplace on