South Florida Home Prices Continue to Break Records (2024)

FAQs

Are property values dropping in Florida 2023? ›

Overall, the Florida housing market is likely to remain strong in 2023, with continued demand for homes and steady price growth. However, the market may begin to stabilize as the growth rate slows down, which may lead to more balanced conditions between buyers and sellers.

South Florida is one of only two US markets forecasted to see price appreciation in 2023, according to the Goldman Sachs forecast. Wealth migration, cash buyers, and global companies continue to relocate to South Florida, which is expected to contribute to the strong housing market.

Although the South Florida housing market has begun slowing after its frenetic peak pandemic pace, most budget-conscious and first-time homebuyers remain sidelined because they still can't afford to buy homes.

Are home prices in Florida dropping or rising? Over the past few years, home prices in Florida have skyrocketed. Per Redfin data, in the middle of 2020, the median sale price was $275,600 — by April 2023, that figure had jumped to $400,800.

In 2023, experts forecast that the Florida home prices may fall down to 20%. Mortgage Rates Have Almost Doubled: Mortgage rates almost doubled from April 2021's 3.12% to 6.27% for the week ending on April 13, 2023. Sellers are Coming Back, but Slowly: The number of listings dropped by 14.9% in March 2023.

Revised Housing Market Forecast

Although home prices are expected to improve in the second half of the year, the California median home price is projected to decrease by 5.6 percent to $776,600 in 2023, down from the median price of $822,300 recorded in 2022.

At the end of 2022, the Florida Business Observer reported that home sales had fallen by nearly 40% in the publication's home state. At a glance, that puts Florida on par with the rapidly cooling real estate market in the country as a whole.

Chief Economist at First American Financial Corp, Mark Fleming, says an interest rate drop may not happen for several months. "Possibly in 2024, but it will depend on the Fed's decisions about raising rates in the second half of the year," says Fleming.

Miami Real Estate Market: Predictions

The U.S. News Housing Market Index predicts that the first five months of 2023 will see just under 3,265 single-family homes and just over 5,545 multifamily housing units approved for production.

The other reasons that people leave the state after moving here are varied: “A nearly 14,000-member Facebook group for people moving out of Florida has cited severe weather, low wages, crowded beaches, changing politics, and steep housing prices as reasons people left.”

What is the fastest growing real estate market in Florida? ›

1. Cape Coral. Home to 32 Fortune 500 companies, Cape Coral, Florida is one of the top 10 metropolitan areas for job growth in the United States. The Cape Coral metro area (including popular cities like Fort Myers and Lehigh Acres) is also among the fastest-growing areas in the country, in terms of population.

While new residential construction permits in South Florida plummeted, statewide they fell just 1% from 2021, showing the particular challenges facing the region when it comes to addressing its affordable housing crisis.

Additionally, Florida's foreclosure rate is a reported one in every 3,964 homes. SoFi said the number of foreclosures in the country had “drastically increased” through 2022 and that “with a total of 248,170 initiated, U.S. foreclosures rose a staggering 169 percent from the previous year.”

As of Q4 2022, the number of closed sales for single-family homes decreased by 33.1% from the previous year and the number of new listings was down 17.1% from the year before, according to Florida Realtors. That doesn't mean it's a bad time to buy, though.

Florida Housing Market Overview

Looking at the five-year period from September 2017 to September 2022, the median sale price in Florida peaked in May 2022 at $410,900; as of September 2022, the median sale price is down to $392,500.

Despite what some may think, 2023 is still a good year to invest in real estate, thanks to advantages like long-term appreciation, steady rental income, and the opportunity to hedge against inflation. Mortgage rates are expected to decline, but the housing market is likely to remain competitive due to low supply.

The median sale price for a single-family home in the state as of April 2023 is $410,000, according to Florida Realtors — and in the Miami area it's a much higher $585,000. By comparison, the nationwide median sale price is $388,800.

This value is seasonally adjusted and only includes the middle price tier of homes. Miami-Fort Lauderdale-West Palm Beach Metro home values have gone up 22.6% over the past year and Zillow predicts they will rise 1.8% by December 2023. Miami-Dade County home values have gone up 14.5% over the past year.

With mortgage rates declining faster than expected, home prices are likely to remain mostly flat throughout 2024. This will be good news for buyers who have been waiting on the sidelines for a good time to enter the market.

If you need to be occupying your home by a certain date to save on rent, it's a much better deal to close at the end of the previous month (for example, January 30) instead of the beginning of the current month (February 1).

What should you not do when staging a house? ›

Maybe, maybe not. But the market forces of rising interest rates, from 3.8% to 5.34%, to 5.97%, to 7.81% finally hampered the buying power of homebuyers, slowing home sales. In Lee County from 2021 to 2022, single-family home sales dropped by 19.5%. Collier sales fell by 31% and Charlotte by 9.3%.

According to Florida law, a buyer or seller is able to terminate a residential real estate contract and walk away from the deal without penalty by seeking rescission. Rescinding a real estate contract means the contract is considered to have no force and effect from the beginning or that the contract is canceled.

While it expects the Fed to continue increasing rates to tame inflation, it believes that long-term rates have already peaked. “We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary.

'I believe by the end of 2023 we will see rates start to fall with a target of between 2.5 to 3 per cent in 2024. 'I believe if the base rate can get back to circa 2.5 per cent, then we will see rates hovering around that mark with a return to products that have not been seen in the mortgage industry for some time.'

Although prices remain higher compared to last year, month-to-month sales prices show a consistent decline in South Florida. In Miami-Dade, median sales prices have fallen from $575,000 in October 2022 for single-family homes and from $395,000 in November 2022 for condos.

The Miami real estate market, similar to other major metro markets, is seeing a slow down in market activity and is inching closer to a more balanced market as inventory levels increase steadily. In January 2022, Miami had only 1.8 months of single family home inventory.

Which state has the most people leaving? ›

Top states residents are leaving

The annual 2022 United Van Lines National Movers study is out! But it wasn't good news for New Jersey or New York. A similar report from United Van Lines showed New Jersey as the top outbound state, followed by Illinois, New York, Michigan, and Wyoming.

What States Are Americans Moving To? The most popular state people moved to in 2022 was Florida, while the state people most often moved from was California. Texas was the second-most popular state for Americans on the move, while North Carolina came in third.

Where are the hottest real estate markets in Florida? The three most expensive markets in Florida to buy a house at the end of 2022 were Sarasota, Miami and Fort Lauderdale, according to the Council for Community and Economic Research's Cost of Living Index.

Florida has excellent weather, moderate-to-warm temperatures year-round, and sees a seasonal rush in late fall and early winter. December typically outpaces all other months as Florida's best-selling month. Listing in November means a home will spend the fewest days on the market (DOM) before selling.

In February 2023, most pundits believe the construction materials cost will continue to fluctuate. The consensus is that the cost of most materials will not return to pre-pandemic levels this year, though they should come down or at least not increase as dramatically as they have been.

Overall, the average cost of homes for sale in Florida is $406,988, with an average price per square foot of around $207. Therefore, it's currently more expensive on average to buy an existing home in Florida than it is to build a house.

Benefit From Off-Season Deals

If you are looking to keep your construction costs lower, fall is the best time of the year to start building a house. The fall and winter months are off-season for residential home construction; that means the cost of labor and materials is usually down.

Miami topped the list with the nation's highest rate of 18.2 percent.

Osceola County, Florida – located in the Orlando-Kissimmee-Sanford metropolitan area – has one of the highest foreclosure rates of any U.S. county.

What state has the most foreclosures 2023? ›

States that had the greatest number of foreclosures starts in Q1 2023 included, California (6,867 foreclosure starts); Texas (6,764 foreclosure starts); Florida (5,724 foreclosure starts); New York (4,345 foreclosure starts); and Illinois (4,006 foreclosure starts).

Sellers can net thousands of dollars more if they sell during the peak months of May, June and July versus the two slowest months of the year, October and December, according to a 2022 report by ATTOM Data Solutions.

Spring (March-May)

The spring months are often considered the best month to sell a house. In fact, across the country, the first two weeks of May are often the busiest and most lucrative time for sellers. The spring has warmer weather, longer days, and lush landscaping opportunities that boost curb appeal.

Winter is usually the cheapest time of year to purchase a home. Sellers are often motivated, which automatically translates into an advantage to you. Most people suspend their listings from around Thanksgiving to the New Year because they assume buyers are scarce.

Florida is expensive because of its popularity among retirees and tourists. Retirees often have disposable income and spend it on activities like golfing, fishing, and boating. Additionally, housing, food, and healthcare costs are higher in Florida compared to other states.

According to Norada Real Estate Investments, Florida home values have risen by an eye-popping 80% over the last five years — and GOBankingRates spoke with several experts who expect the upward trend to continue for at least another half-decade.

There are various reasons why people are moving to Florida. The most common ones include warm weather, affordable cost of living, and job opportunities. Additionally, many people are reevaluating their living situations and considering moving to areas with more space and outdoor activities.

“We expect that 30-year mortgage rates will end 2023 at 5.2%,” the organization noted in its forecast commentary. It since has walked back its forecast slightly but still sees rates dipping below 6%, to 5.6%, by the end of the year.

ING predicts rates to range from 5% in the second quarter of 2023, rising to 5.5% in the third quarter, and then falling back to 5% in the final quarter of the year. They also predict interest rates ranging between 3% and 4.25% in 2024, staying at 3% by the end of 2025.

“[W]ith the rate of inflation decelerating rates should gently decline over the course of 2023.” Fannie Mae. 30-year fixed rate mortgage will average 6.4% for Q2 2023, according to the May Housing Forecast. National Association of Realtors (NAR).

What is the real estate prediction for Miami 2023? ›

Miami Real Estate Market: Predictions

The U.S. News Housing Market Index predicts that the first five months of 2023 will see just under 3,265 single-family homes and just over 5,545 multifamily housing units approved for production.

Florida is expensive because of its popularity among retirees and tourists. Retirees often have disposable income and spend it on activities like golfing, fishing, and boating. Additionally, housing, food, and healthcare costs are higher in Florida compared to other states.

Florida built hundreds of thousands of new rental units between 2012 and 2021, but lost nearly 277,000 units with monthly rents below $1,000, according to the University of Florida.

The most shocking reality of the effect hurricanes have on Florida's housing market is that there really isn't one – there is no real long-term effect on the housing market. There are plenty of short term effects as the recovery progresses, but Florida's housing market recovers relatively quickly from those.

Florida is an excellent location if you're looking for work. According to Wallethub, Florida is the 14th best state to find a job. The unemployment rate in Florida was only 2.5% in December 2022. With the national unemployment rate at 3.4%, many people move to Florida to take advantage of opportunities in their fields.

Over 70 percent believe Florida's overcrowding and overpopulation is a major problem. Nearly 60 percent believe that adding another five million people to Florida's population is a serious problem. Forty percent say Florida has become a less comfortable place to live over the past five years.