The real estate market in Florida is undergoing major changes. The average selling price increased by 3.2% compared to 2022, the number of houses sold decreased by 19.7%. At the same time, housing prices may fall by up to 20%.
New buyers are starting to enter the market as mortgage rates are falling every week and currently stand at 6.27%. Now potential buyers have more advantages than sellers. Until recently, the Florida market could be described as the "hottest" after the pandemic, but at the moment it has slowed down significantly. In 2023, house prices in Florida are projected to fall by up to 20%.
Mortgage rates have almost doubled – from 3.12% in April 2021 to 6.27% at the moment. Sellers are returning, but slowly: there are 14.9% fewer of them. Selling takes longer: homes in Florida stay on the market for an average of 49 days, while in 2022 it took 24 days.
The situation in the Florida real estate market reflects a nationwide trend with high demand and low supply. A decline in home sales across the state has caused prices to rise. Now, on average, the price of houses in Florida is $400,000, which is 3.2% more than in 2022. In 2023, prices will decrease by about 4%, which will be the first annual drop since 2012.
As for rent, Florida leads the country in terms of the growth of the average cost of rent. Since 2022, the growth has been 29%. On average, tenants pay $1,635 for rented housing.