The South Florida real estate market remains strong, while the performance of other states is fluctuating. There are reasons to believe that the year 2023 will be favourable for buyers in terms of both supply and prices.
An increasing number of new properties hits the market, while prices often tend to decrease. In 2023, for instance, a villa in Coral Ridge in the resort city Fort Lauderdale on the east coast of South Florida was listed for sale for $1.2 million. Last year, a similar villa was sold for $1.7 million. According to realtors, the prices are dropping compared to 2022.
Experts identify another trend. In 2022, far fewer people purchased real estate for cash. The number of such transactions increased this year. Interest rates on mortgage loans also reduced, professionals note. If the buyer has enough money for the purchase, they can get a home loan at under 6%.
Affordable housing remains a problem, however. Most new properties in South Florida are still high-end houses worth over $1 million. There is a limited number of homes that cost around $500,000.