Buyers in Florida and other states can start to breathe a sigh of relief. The huge price surges that occurred during Covid have finally cooled–and receded in many markets. The real estate market is shifting toward balance rather than decline, with real estate prices–especially in Florida– expected to hover in a tight, stable range.
Positive buyer activity now moves with mortgage-rate swings, creating short bursts of competition whenever rates ease even slightly. Fear of missing out (FOMO) can be a strong driving force for both buyers and sellers in real estate pricing. FOMO with buyers can lead to steep competition and bidding wars. On the other hand, sellers, too, can have FOMO when they sense downward market pressure and want to sell before prices move further downward.
Inventory is rising slowly as owners with ultra-low rates stay put, keeping supply from growing fast enough to pressure prices downward. Additionally, it is being reported that many sellers are realizing that the home prices they could have fetched in 2023 are no longer attainable.
Migration, jobs, and tax advantages continue supporting demand, preventing major price drops (in most markets) despite higher borrowing costs–at least compared to Covid years, when we hit a record low of 2.65% in 2021.
And as I have said so many times, markets breathe in…and markets breathe out.
Always.
