Florida’s real estate market saw strong gains in 2021 despite the economic turmoil of the pandemic. By the end of the year, there was a significant rise in median house prices and more sales compared to 2020. This year is also off to a strong start. Based on the data and expert predictions, this is what we can expect for the Florida real estate market in the spring of 2022.
Demand for Housing Will Increase
Florida has always attracted people from out of state and abroad thanks to its warm climate and low taxes. Now that remote work is becoming commonplace, more young professionals and families are joining new immigrants and retirees in the search for Florida homes for sale. Because of this, we can expect to see a high demand across all housing categories including single and multi-family homes, condos, and townhouses.
Inventory Will Remain Low
The pandemic wreaked havoc on new construction in Florida. Building supplies became short in supply and prices soared, while labor was down thanks to Covid-19 restrictions. These issues are starting to resolve and new constructions are on the rise. However, it will take some time for the supply to catch up to demand. Therefore, inventory levels will still be low throughout the spring of 2022.
Housing Prices Will Remain High
Whenever there is high demand for housing and low inventory, housing prices rise. According to Florida Realtors®, the statewide median sales price for existing single-family homes was $348,000 at the end of 2021, which was an increase of 20% from December of 2020. Although experts predict that housing prices in Florida will level off later this year, we can expect prices to remain higher than usual this spring.
Vacation Rentals Will be in High Demand
With more people eager to travel, particularly to domestic destinations, we can expect to see more demand for vacation rentals. This is great news for those who are planning to rent out their Florida homes. With the right property and solid property management, you could see great returns on your investment. Now is also a great time to consider purchasing a rental property to get a jump on next year.
Sellers Will Have Great Opportunities
There’s no doubt that Florida’s real estate market is currently geared towards sellers. Florida Realtors® reports that cash sales doubled in 2021 compared to 2020 with an increase of 53.2% for existing single-family homes and 50.2% for townhouses and condos. This is due to the fact that supply is low and demand is high. Home owners who are planning to sell this spring may find excellent opportunities like never before.
These predictions look at Florida as a whole and are based on data and expert opinions. However, keep in mind that there is no guarantee of how the market will trend. In addition, every local market has its own trends to be aware of.
If you’re considering buying or selling a home in Florida, consider working with a local real estate agent who can advise you on what’s happening in your particular market.
From Atlantic Coast To Gulf Coast - The Real Estate Expertise You Deserve
Get in touch
Leave A Comment