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The large influx of residents from other states buying real estate in Florida during the pandemic has created what many believe to be a mini-bubble in the housing market. While inventory is low, demand is high, due to the rush of many northern residents to make the decision to move to Florida and also historically low-interest rates. The imbalance became so great that it reached the point where buyers competed for the same property.
In this article we bring some forecasts for the Florida real estate market in the coming months. Keep reading:
It turns out that this race for homes, especially single-family homes in Orlando and Central Florida, may be coming to an end of the cycle. Many of these new buyers have already purchased their homes. Inventory remains low, but demand may decline somewhat from now on.
On the other hand, homeowners who were delaying the decision to sell their homes in the summer realized that the strategy may not have been the best one. Afraid of losing the advantages of this “seller” market, they will start putting their homes on the market, improving the supply side.
The condo market, not much disputed by new buyers, who prefer large single-family homes, with a backyard and pool, in suburban regions, may have a rebound. Since there is not that much inventory in the segment of single-family homes any more, large condos might be an option. This helps to warm up a little this segment of the market that suffered a lot from the pandemic (prices plummeted in Miami).
Developers are also noticing the high demand for single-family homes and are moving to approve new projects, especially in suburban areas and rural areas of central Florida, where land is still available. The new construction increases the supply, leading to a greater market balance.
About AMG International Realty
AMG International Realty is a full-service brokerage firm in Florida. If you are interested in buying, renting or selling your property, please call me today: +1 (305) 318 6968 (Heloisa Arazi).