Well, it is official. Economic data released this week confirmed what many of us have known for some time now. The United States economy is in a recession. As a reminder, a recession is defined by two consecutive quarters of falling gross domestic product (GDP). Today’s GDP figure that was released reflected -0.9% growth. Therefore, this marks our second consecutive quarter of negative GDP. Although these data along with record-level inflation brings much uncertainty to many American households, there are some bright spots for Floridians. In addition to having a robust economy, The Sunshine State is also considered to have one of the most stable housing markets in the nation.
10 U.S. states with the most stable housing markets
- #1. Utah
- #2. Washington
- #3. Florida
- #4. Texas
- #5. Idaho
- #6. Tennessee
- #7. Vermont
- #8. Arizona
- #9. South Carolina
- #10. South Dakota
What does this mean?
Overall, Florida home prices have been gradually rising in certain parts of the state due to continued high demand. With this said, the rapid rise in mortgage interest rates has certainly resulted in the overall housing market cooling off substantially throughout the country. REALTOR®.com recently recently revised its 2022 forecast, now calling for sales to decline by 6.7% this year. For perspective, forecasters previously predicted a 6.6% increase. Naturally, some states will fare better than others largely based on buyer demand and local economic factors, including companies moving into an area. The good news is that Florida may likely be one of the safest harbors for homeowners as we weather the storm of a recession.
Summary
We are already seeing a tremendous slowdown in the housing market in the recent months. Although Florida is no different in terms of this slowdown, it is largely expected that home prices should largely stabilize or correct slightly in the coming months. A major reason why the Florida housing market is predicted to fare better than most states simply comes down to demand and a healthy economy. Of course, The Sunshine State is heavily dependent on travel and tourism, which will undoubtedly be negatively impacted by the current recession. However, we continue to see record numbers of Americans relocating to the State of Florida. In addition, more companies are also relocating their headquarters here as well. Although the future is uncertain for the American economy, the Florida housing market may offer some more stability than other states.
Do you have questions about the South Florida market? Let our team of experts at Live South Florida Realty, Inc. assist you today! Also, don’t forget to download the Florida Home Search App for your mobile device today!
