An expected side effect of the US Federal Reserve System’s struggle against the inflation was an increase of mortgage rates that almost doubled compared to the last year. Many analysts therefore forecast that the market will cool considerably after several years of explosive growth. And some states will survive such changes better than others.
So far, housing prices are still at a record height. Bidding wars among buyers increasing the offered prices are observed in some areas.
The recently published CNBC’s America’s Top States for Business study takes into consideration the health of the housing market in each state because companies prefer to open offices in places where their employees would be willing to settle. Along with other indicators, the rating is based on the year-over-year price appreciation, new construction per year, as well as foreclosures and insolvency in the first quarter.
Florida is second only to Washington and Utah and holds the rightful third place in the rating of US states with the most stable housing markets. Local prices experience rapid ups and downs but construction is also active here. The only cloud on the horizon could be the growing number of foreclosures.
The value of Florida homes increased by 25.7% year-on-year. The foreclosure rate is 1 per 1,211 housing units. The share of underwater mortgages is only 1.4%.
The prospects of the Florida home market are therefore better than those of almost any other US state.