Despite the recent data on the number of realtors in the USA showing a reduced membership this year, property experts forecast that the market will remain hot.
Jerry Howard, CEO at National Association of Home Builders, doesn’t think that it’s a coincidence. The Florida population has grown by 1.9%, and the state administration encourages development across all sectors, like they do in North and South Carolina. This is where people are moving, this is where construction will still pay off, Mr. Howard adds.
Varney & Co, an American news show, aired Mr. Howard’s comment along with comments of two leaders in the Florida real estate market who clearly stated that they were not planning to leave the Sunshine State in the nearest future, although house sales reduced year-on-year.
There are indeed fewer transactions, according to Jeff Lichtenstein, owner of Echo Fine Properties. In his interview to Madison Alworth, a FOX Business journalist from Miami Beach, Mr. Lichtenstein emphasized that his firm’s performance deteriorated by approximately 40% compared to December 2021. Interest rates grew from 3% to 7%, which reduced the number of transactions.
However, Aviva Wittenberg, an agent of Echo Fine Properties, started his career in Florida four months ago, reduced property sales opportunities notwithstanding. He believes that choosing a broker who offers the greatest support, coaching, and lead generation is the most important thing, and it was essential for his success at the early stages of his career.
Experts’ comments counteract a recent report of the National Association of Realtors where this group forecasts a reduced number of agents in the current year.
Other market experts share the opinion that Florida will not give in to the cost adjustment in 2023, and its market will continue to grow.
While California and Massachusetts are adopting measures like a mansions tax or a millionaire tax, driving wealthy people out of these states, Miami and South Florida will show a healthy growth, says Dina Goldentayer, a real estate expert, on the US show Mornings with Maria.
Mr. Howard adds that it’s difficult to promote affordable housing and increase the inventory in Democrat-led states. It’s extremely challenging for construction firms to build any house in California, New York, New Jersey, Massachusetts, or Illinois, to say nothing of affordable properties for first-time buyers.
Katrina Campins and Cheryl Casone, anchors at FOX Business, also emphasized in Mornings with Maria that Florida will continue to see an additional growth as more houses come on the market.
Affordability is the key issue, according to Ms. Campins. The average mortgage payment is set to reach $2,430 in 2023, which is 28% higher than last year and almost double the level of 2021. In her opinion, the upside is that more listings go on the market, enabling buyers to negotiate and exact concessions from sellers.
The founder of Mansion Global also forecasts that the rental market will grow, and Florida will still be ahead of the entire country.
Sales are declining in the Florida property market, but this state is still growing faster than any other markets across the USA, adds Ms. Campins. Texas and Tennessee have already encountered this situation. In-migration to Florida continues.