The average house in the United States is now worth over $350,000. In desirable areas like Florida, though, homes can be worth much more on average.
The Florida real estate market is expected to make a significant shift once the Federal Reserve raises interest rates. As you might guess, this could influence the best time to sell a home. Let’s take a look at some of the most notable trends in the housing market in Florida you need to keep in mind.
1. High-Income Buyers Will Continue to Come From Out of State
There’s no doubt that people are moving to Florida for the good weather and low taxes, but another significant factor is the state’s lack of an estate tax. This means that people with high incomes can move to Florida without having to worry about paying a hefty tax on their assets.
This trend is expected to continue in the coming years, as more and more people look to escape high-tax states like California and New York.
2. The Luxury Market Will Continue to Grow
As the number of high-income buyers in Florida increases, so does the demand for luxury homes.
This shouldn’t come as a surprise, as luxury buyers tend to have the money to buy the best of the best. In addition, many of these buyers are looking for a second or third home in Florida, which further boosts the demand for luxury properties.
3. Investors Will Continue to Play a Role in the Market
The strong demand for rental properties in Florida is expected to continue in the near future. This is good news for investors, as they will be able to continue to cash in on the state’s booming real estate market.
In fact, many experts believe that now is a great time for investors to buy property in Florida, as prices are still relatively low compared to other parts of the country.
4. Homes Will Continue to Sell Over the Listing Price
As the demand for Florida real estate continues to increase, so does the competition among buyers.
This is resulting in more homes selling for over the listing price, as buyers are willing to pay whatever it takes to get their hands on a piece of Florida property. If you’re thinking of selling your home in the near future, this is something you should keep in mind.
5. Inventory Volume Will Remain Low
The low inventory levels we’ve seen in Florida over the past few years are expected to continue in the near future. This is good news for sellers, as it means there will be less competition when it comes to selling their homes.
It’s important to note that this trend could eventually lead to an increase in prices, as buyers are likely to be willing to pay more for a home if there are fewer homes on the market.
6. Rising Interest Rates Will Deter Lower-income Buyers
As interest rates begin to rise, it’s expected that lower-income buyers will be priced out of the market. This could lead to a decrease in demand for starter homes and lower-priced properties, as these buyers will no longer be able to afford them.
As a result, we could see a shift in the types of homes being bought and sold in Florida, as higher-priced homes become more prevalent.
7. Now Is a Good Time to Sell
Overall, now is a good time to sell your home in Florida. Prices are still relatively low, the demand for Florida real estate is high, and there is less competition among sellers.
However, it’s important to keep an eye on the trends we’ve discussed, as they could have an impact on the best time to sell your home in the future.
8. Remote Work Will Allow Even More People to Relocate to Florida
The trend of remote work has been growing in recent years, and it’s only expected to increase in the coming years.
This is good news for Florida, as it means that even more people will be able to relocate to the state. With no income tax and plenty of sunny days, Florida is an attractive option for those who can work remotely. This also means that the number of buyers in the market will substantially increase.
9. Value Increases Will Inevitably Slow
As we mentioned, prices in Florida are expected to continue to rise in the near future.
However, it’s important to remember that this growth is not infinite. At some point, the value increases will inevitably slow, as we reach the point of diminishing returns.
This is something to keep in mind if you’re thinking of investing in Florida real estate, as you don’t want to overpay for a property. If you begin to notice homes in your area having lower increases in value from month to month, you may want to devote more effort toward selling your home.
The Housing Market in Florida: The Bottom Line
The housing market in Florida is expected to continue to be strong in the coming years. If you’re thinking of selling your home, now may be the perfect time to do so. However, if you’re not in a rush to sell, you may want to wait for the market to heat up even more so you can get the best possible price for your home.
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