Will a Housing Crisis Hit Florida?
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Loading... - Kevin Bailey
- 10 Mar 2023
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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. All over America, prices are falling as high inflation and rising interest rates tamp down demand for properties.
But despite the steep decline in sales, home prices in Florida keep going up, up, up.
It’s part of an ongoing trend that’s starting to feel unstoppable. 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.
While a handful of cities are driving much of the growth — Zillow ranked Tampa as the country’s No. 1 real estate market last year — the overall market is strong statewide, and experts who predict a crash, crisis or collapse in the near future are few and far between.
The Market Is Always More Precarious in Florida — Sort Of
According to Forbes, Florida was among the hardest-hit states during the housing collapse of the late 2000s because of two factors that remain in place today. Many of the state’s markets have both a high concentration of foreign investment and stark wealth inequality, both of which are key ingredients for volatility in real estate.
Even so, there are few signs that the current Federal Reserve-devised cooling period bears any resemblance to 2008 — but that’s not to say that Florida isn’t flashing mixed signals. Read More…
