Florida Real Estate Market UpdateFlorida Buyer Broker

2023 Real Estate Market Update.

Sales are down and prices are coming down and inventory is increasing.

Builders are building competitive products in suburban and rural parts of central Florida where land is affordable. 

Prices have reached their maximum high and people can no longer afford to compete with the hedge funds and REITS who have been purchasing single family homes in urban, coastal and recreational areas to use as rental properties. 

There is pending legislation in the Senate to pass a bill requiring hedge funds with 75 Single Family homes to pay $10,000 a year for each home.  It is unlikely the bill will pass.  However, this could be another red flag for investors.  Trouble is on the rise when the government is planning on stepping in to make the real estate more affordable. 

Sellers agents will have to face reality, when they are not offering the buyer a new home or condominium.  Given a choice the buyer will choose a new home for the same price or less than a resale. 

Some investors and hedge fund managers are starting to sell their resort single family home inventory in Florida coastal areas.   They are also refinancing to take out their equity.  They will may sell and wait for the pending foreclosure market and lower prices before they start their buying frenzy again.

Foreclosure market on the rise?  When homes become worth less than their mortgages, because they were purchased at escalated prices, cash buyers will take out second mortgages at higher rates to get their equity.  Unless something changes, there is trouble on the rise for the Florida housing market.   Florida has a 2 year foreclosure processing time frame. 

The anticipation of Snowbirds from the North always motivates sellers to try to sell their properties in the winter.  There is often an artificial  increase of higher prices in a stagnant and unaffordable affluent market.  This is a sign, the seller does not need to sell and the buyer should expect to pay a premium prices, and pay cash without appraisals.  Sellers and their agents are still thinking they will get these quick sales at higher prices. 

Many buyers are not just waiting on interest rates to come down, they must have lower prices.  Smart affluent buyers aren’t buying because they know the economy is not stable and they don’t want to lose equity by overpaying in an over inflated real estate market.  Higher property taxes, higher insurance rates or lack of insurability are deterrents for buyers seeking to purchase in coastal areas. 

There are always sellers who NEED to sell and buyers who WANT to buy.  2024 is going to be a tough year for sellers.  Buyers will have to come to terms with property values and decide whether they are ready to buy at inflated prices or to rent at inflated rental prices.

Click here for more information on Florida real estate inventory.

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