What awaits the Florida property market in 2023: experts' forecasts

What awaits the Florida property market in 2023: experts' forecasts

Demand for real estate in Florida has remained extremely high over the past few years, but the market is being restructured because of the rising interest rates and increased borrowing costs. As of December 2022, the average price of a single-family house in the state was $395,000, which is a 6% increase over the same period in 2021. The rise in value was driven by the rapid influx of domestic migrants and corporate investors investing in secondary housing and new buildings in Florida.

Those who are considering buying a house or apartments in Florida and trying to understand whether or not to conclude a deal now should read the experts' forecasts for 2023.



Demand for real estate in Miami remains stable both from local and foreign buyers amid rising inflation and higher interest rates. The real estate deals have increased to about 6 months compared to 1.4 months, as it was at the peak of the market. The average price of a residential unit rose by 27.4% in 2022 to $557,000 at the end of December.

"In my opinion, the Miami housing market expects the same steady consumer demand in 2023, as the city is becoming a major financial centre for many banks and financial companies. It ranks second after New York in the number of financial institutions. If interest rates continue to rise, this will not have a significant impact on demand, as many transactions are concluded for cash. I also expect the rise in housing prices to be more moderate, as we are in a post-pandemic period, and our market is rebalancing after an unprecedented accelerated price growth," predicts Jeff Fahey, a real estate agent from Miami.

What awaits the Florida property market in 2023: experts' forecasts

Fort Lauderdale

The housing market in Fort Lauderdale has slowed down significantly since the summer of 2022. Persistently high inflation and rising borrowing costs have eroded Americans' purchasing power and led to a rapid cooling in the second half of the year. Although prices remain high due to limited supply, they are slowing down. As a result, many homeowners are waiting for market conditions to improve to sell the property, while others are reducing the cost and offer discounts to attract more buyers.

"According to the latest consumer price index data, inflation has finally peaked, but this will not be confirmed until the summer/autumn of 2023. Interest rates will continue to rise, but at a more moderate pace. As soon as rates stabilize and begin to decline, the Fort Lauderdale market is likely to experience a surge in buying activity and competition," predicts Julie Harris, a real estate agent from Fort Lauderdale.


Jacksonville's housing market has been steadily growing by 15-20% over the past few years, as many Americans from other states are moving to Florida, but market conditions are normalizing and returning to more balanced results. The local supply has reached 4 months and continues to increase. New offers are on the market for about 45 days, compared to 12 days, as it was at the peak of demand during the pandemic.

"In 2023, consumer demand will remain strong, and this trend is likely to continue. If the rates rise again, it will only help to increase the level of supply and will be a good sign. I also expect housing price growth to be more moderate, and I think we will see a 5% increase in 2023," predicts Jeff Rieber, a real estate agent from Jacksonville.

What awaits the Florida property market in 2023: experts' forecasts

Greater Orlando

Greater Orlando remains a popular relocation destination for families wishing to enjoy beautiful Florida weather and theme parks. As a result of high demand, local developers have launched several new projects. Primary real estate in the urban agglomeration is experiencing short supply. Demand continues to grow in Orlando's most popular suburbs, such as Lake Nona, Winter Garden, and well-known areas, such as Dr. Phillips, Windermere and Winter Park. Homes will become less affordable because of the influx of new migrants discovering the Central Florida market.

"In my opinion, we are returning to a "balanced" market, where buyers will have time to decide which house they want to choose. Offers with unique features (such as new renovation, a swimming pool, a large land plot and the best schools) will continue to sell quickly and at high prices," predicts Justin Pekarek, a real estate agent from Orlando.


Sarasota's real estate market remains strong in the new year, as many people are moving to the region from northeast Florida. It is still a seller's market, as real estate offers will last for about 3 months. Many transactions are concluded in cash, and prices of property in good areas and with a wide range of amenities remain high.

"In 2023, the Sarasota market will maintain the same positive consumer demand and a slightly reduced supply level. If rates continue to rise, they will not have a strong impact on our housing market, as many buyers do not take out mortgages. At the same time, higher interest rates will moderate the rapid price growth that we have seen in recent years," predicts Julie Larson, a real estate agent from Sarasota.

What awaits the Florida property market in 2023: experts' forecasts

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