When in doubt, zoom out! When looking at single family closed sales over the past year in Florida, one of the hottest real estate markets in the world, the numbers tell us that the sky is falling. Closed sales have declined up to 40%to 15% year over year in all of Florida. This is due to the rapid increase in interest rates and a tight housing supply. Looking at this data might cause a lot of concern for investors and home buyers but these numbers don’t tell the whole story.
When you zoom out on a larger time frame you see that even though the market may be cooling now, it is still red hot when compared to only 3+ years ago. Closed sales are about 20% higher than they were in 2018, 2019, and the first half of 2020. After the pandemic, we saw market conditions that were so elevated due to the influx of money supply and near zero interest rates. So compared to the last 2 years we see a huge decline, which in my opinion is good for the market as a whole.
2022 and 2023 has been seemingly a market crash but it is much more like a healthy and needed correction when you look at a longer time frame. Florida remains one of the hottest markets in the country and is likely continue as we see a normalization of supply and interest rates.
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.