Did you know tight supply is keeping housing markets up? Low supply is still the overarching theme in US housing supply, and even though demand has been squashed by higher interest rates, the market is still a float. With everyone who purchased a home at record low interest rates there are less sellers in the market place keeping the supply historically low. With low supply, even 6-7% interest rates can bring the market down completely. There are a few possible scenarios where we see a sudden shock in housing supply but if it were to happen I don’t think the housing market would be our biggest problem
Source: Nicole Friedman, Wall Street Journal 5/2/23
Florida home values have risen by about 80% over the past 5 years and a positive trend is forecasted for the next 5 years. With the recent spike in mortgage payments as a result of rising interest rates, analysts are watching the Florida housing market closely to see what effect this will have. It is likely to restrict house price increases, but to what amount is unclear because there is still a “fear of losing out” attitude among purchasers, which is fueling the market, although slowly.
Overall, the Florida housing market is strong and is predicted to remain so in the next five years. If you’re a seller, this is wonderful news since it implies property values are rising and there isn’t much selling competition, giving you the luxury of selecting from the best offers on your schedule. Higher mortgage rates may cause unprepared house buyers to postpone their purchases.
If you’re interested in selling your home or if you’re an investor and are looking for properties, don’t hesitate to give Homeinc a call (888)850-2636. One of our licensed real estate agents will present you with some options and you can decide what works best for you.