Florida’s Housing Market Stabilizes: What It Means for Buyers and Sellers
Estimated Reading Time: 5 minutes
- Florida’s housing market is stabilizing after a period of rapid price increases.
- Buyers are benefiting from increased inventory, while sellers must adjust expectations.
- Working with a local expert can help navigate the changing market.
Table of Contents
- A Cooler, More Balanced Market Emerges
- What Buyers Should Know
- Advice for Sellers
- The Takeaway
- FAQ Section
- Contact Beverly Howe
A Cooler, More Balanced Market Emerges
Florida’s housing market has been red-hot since mid-2020, fueled by record-low mortgage rates, pandemic-driven migration from other states, and a severely limited inventory of homes for sale. This perfect storm of factors led to an incredibly competitive seller’s market, with properties often receiving dozens of offers and selling well above asking price.
However, data from the Florida Realtors association shows that the market has begun to cool off and move toward more balanced conditions. In the first quarter of 2023:
- Closed sales decreased 8.1% compared to Q1 2022.
- Median sale price growth slowed to 5.2% year-over-year, down from 15%+ earlier in 2022.
- Months’ supply of inventory, though still low at 2.8 months, has nearly doubled from the record low of 1.5 months in early 2022.
- Median time to contract increased from 10 days in Q1 2022 to 24 days in Q1 2023.
These trends indicate that while demand remains strong and prices continue to rise, the market is gradually rebalancing. Buyers have a bit more breathing room to shop around, while sellers may need to adjust their expectations slightly.
What Buyers Should Know
For buyers, the stabilizing market is a welcome development. The frantic pace of the past two years made it extremely challenging to find and successfully bid on a home, with many buyers getting priced out or exhausted by the process. Here are some key takeaways for buyers in the current market:
- More inventory to choose from: With the supply of homes for sale slowly increasing, you’ll likely have more options to consider and a bit less pressure to make an immediate offer.
- Still a seller’s market: Even with the cool-down, demand continues to outpace supply, and well-priced homes in desirable areas are still selling quickly. Be prepared to act decisively when you find a property you love.
- Get pre-approved: In a competitive market, having your financing lined up is crucial. Get pre-approved for a mortgage before beginning your search so you know exactly how much you can afford and can make a strong offer.
- Work with a buyer broker: As a buyer, it costs you nothing to hire a buyer broker to represent your interests and guide you through the process. We have access to off-market properties, can help you craft a winning offer, and will advocate for you every step of the way.
Advice for Sellers
While the stabilizing market may seem concerning for sellers accustomed to astronomical price growth and bidding wars, it’s important to keep things in perspective. Home values remain at historic highs, and well-maintained properties that are priced appropriately are still selling quickly. Here’s what sellers need to know:
- Pricing is key: With buyers having a few more options, overpricing your home could lead to it sitting on the market longer. Work with a local real estate professional to determine a competitive listing price based on recent comparable sales.
- Preparation pays off: In a slower market, the homes that stand out are those in pristine condition. Invest in any necessary repairs or cosmetic updates before listing to make your property as attractive as possible to buyers.
- Be flexible: With less competition among buyers, you may need to be more open to negotiation on price, closing date, or other terms. Consider what’s most important to you and where you’re willing to compromise.
- Have realistic expectations: While you can still expect to sell your home for a healthy profit, the days of 20%+ annual price growth are likely behind us. Focus on your reasons for selling and your broader financial goals rather than trying to time the market perfectly.
The Takeaway
Florida’s housing market is finally catching its breath after an unprecedented two-year sprint. For buyers, the stabilizing conditions offer a bit more opportunity to find the right home without as much stress and competition. Sellers, meanwhile, can still reap significant gains from the state’s elevated home values, but may need to adjust their approach slightly.
Ultimately, whether you’re looking to buy or sell a home in Florida, working with a local expert like Beverly Howe and Florida Buyer Broker is key to achieving your goals. With over two decades of experience helping clients succeed in all types of markets, we have the knowledge, skills and connections to guide you to a successful outcome.
FAQ Section
Q: Is now a good time to buy a house in Florida?
A: With the market stabilizing, buyers may find more options and less competition, making it a promising time to buy.
Q: Should I wait for prices to drop before selling?
A: While future price growth may be lower, home values are still high. It is essential to focus on your reasons for selling rather than try to time the market.
Contact Beverly Howe
If you’re considering buying or selling a home in Florida, contact Beverly Howe at 1-800-283-7393 to learn how we can help you navigate the changing market with confidence and ease. From finding off-market properties to crafting winning offers to maximizing your home’s value, we’re here to be your trusted partner every step of the way.