After the coronavirus outbreak, many out-of-state residents have moved to Florida in search of increased quality of life, outdoor activities and bigger homes. Also, the growth of the population has resulted in a hot Florida real estate market as buyers compete for homes with limited availability and increased demand. Due to this, some real estate in Florida is priced out of the state or outbid. As per data from realtors in Florida, the median sale price for single-family homes in the state was 407,000 dollars.

Some regions in the state are witnessing even more increased rates. Though experts in real estate had expected the market to be comparable to the previous year, the price rise in the Florida housing market may have the opposite effect. When housing prices are very high, homeowners insurance and mortgage rates can also increase, which can have a very big impact on the monthly payment of a homeowner and can make buying a home in Florida very difficult.

Florida Real Estate Forecast

In the last five years, home values in Florida have increased by 81% and the same trend is projected for the next five years. With the increase in mortgage payments due to the increasing rate of interest, financial analysts are closely watching the Florida real estate market to understand the effects that it will have. The increase in mortgage rates is likely to restrict the increase in house prices, but to what extent is not yet clear.

Overall, housing prices in Florida have witnessed dramatic increases in the country, with Tampa and Miami at the forefront. Owing to many variables, like numerous potential buyers, strong sales of properties, scarcity of supply, and an active employment market, the housing market in Tampa has outpaced many other markets.

Real estate experts in Florida predict the housing market in Florida to remain strong for the next five years. This is great news for home sellers in Florida as it implies that property values are rising and that there isn’t much selling competition, providing the seller the luxury of choosing from the best offers. Also, increased mortgage rates can cause unprepared buyers to postpone their purchases. If buyer demand is reduced due to this, price appreciation can be affected and these reduced prices can offer the remaining buyers more confidence in finding a house that they can afford.

Mortgage rates and real estate prices in Florida are rising and affordable houses in the state are being snapped up. If you are planning to sell a home in Florida, chances are that you will come out ahead financially.