Although the housing market has slowed down considerably throughout the country since 2021, many markets throughout the south region are still tracking well above long-term models for home prices. The housing market in the South has been one of the hottest in the country over the past few years, with home prices soaring and inventory levels plummeting. However, there are signs that the market is starting to stabilize in some areas. While some of the most overheated markets such as Boise, ID and Austin, TX have seen steep dips in home prices, this has not necessarily been the case throughout the south region in markets such as South Florida.
The southern forecast for home prices
According to a recent report from Zillow, home prices in the South are expected to grow by just 3.5% in 2023, down from 10.5% in 2022. This slowdown is being driven by a number of factors, including rising mortgage rates, inflation, and economic uncertainty. Despite the slowdown, home prices in the South are still expected to be higher than they were a year ago. In fact, Zillow predicts that the median home price in the South will reach $375,000 by the end of 2023.
While the market is stabilizing, it’s still a seller’s market in many parts of the South. Inventory levels remain low, and bidding wars are still common. However, buyers are starting to get more bargaining power, and they may be able to negotiate lower prices.
As for the South Florida housing market, there is no reason to to suspect a crash in prices as witnessed 15 years ago when the average property lost upwards of 60% in its value. Unlike what was seen during the housing crash, supply and demand are completely different now. In fact, South Florida continues to see rising demand from home buyers which is keeping home prices stable.
Are you thinking about buying or selling real estate in South Florida? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, don’t forget to download the free Florida Home Search app for your smartphone or tablet.