A good part of the owners of real estate for sale in Florida are reluctant to realize the new reality of the real estate market. With significantly higher interest rates compared to last year, demand for real estate in Florida has declined. The loan installment is now 40% higher than that of 2021, making buyers more modest in their demand and also in their proposals. The market, although still heated, is already far from that where a property could receive up to 6 “cash” proposals at the same time, and many above the asking price.
Some sellers are taking a while to notice this difficulty on the part of buyers, caused by high interest rates. It is frustrating to understand that the “frenzy” of a year ago no longer exists and that they “missed the boat” of the overheated market. Many insist on maintaining a price that no longer corresponds to reality and, when they realize that it is too high, the property has already been listed for a long time and is now considered obsolete.
In this scenario, where sales prices do not match demand, the result is an increase in inventory. In fact, inventory is almost 50% higher than a year ago, which is considered good by experts as it shows signs of returning to normalcy.
Opportunity for Investors
Now might be a good time for investors. The market is experiencing a slight slowdown due to high interest rates. However, the interest rate policy practiced by the FED (American Central Bank) may change and follow a downward trend, as soon as inflation is controlled. In this hypothesis, the real estate market will be stimulated again, with the consequent rise in prices.
About AMG International Realty
AMG International Realty is a global real estate company specialized in Florida and focused on the Brazilian public. If you want to know more about real estate opportunities in Miami and Orlando, get in touch right now and chat with me via WhatsApp: +55 11 98111-2555 (Carlos Barros).