After experiencing a wild seller’s market for the latter part of 2020 and through all of 2021, the housing market certainly slowed down considerably in 2022. Of course, rapidly rising mortgage interest rates in efforts to curb out-of-control inflation is the biggest culprit. With home sales slowing down considerably, profit margins must have also decreased for sellers, right? Well, this is not necessarily the case for South Florida sellers. Although interest rates have risen rapidly and forced many would-be buyers out of the market, there is still a supply and demand issue throughout South Florida. Couple this with the continued demand from Americans relocating to The Sunshine State and we have still seen some impressive profits from home sales throughout 2022.
South Florida home profits
It was a record year for profits for home sellers throughout South Florida in 2022. On average, home sellers made about $159,300 profit on the typical sale during 2022. This equated to a 51% increase from the year before. Even with the housing market slowing down dramatically, these were the highest profits seen throughout South Florida since 2008. For perspective, the national average for home sale profits last year was about $112,000. This equated to be a 21% increase from the prior year.
On average, South Florida home sellers have been in their homes for 6 years prior to selling it. Although home sale profits likely peaked during 2022, it is largely expected that continued demand combined with a persistently low supply of homes for sale will keep prices fairly stable throughout South Florida. Moving forward, the overall economic outlook with persistent inflation and a looming recession will certainly impact the housing market. Fortunately, South Florida will continue to remain as one of the most desirable places to live in the country.
Are you ready to move to South Florida or invest in South Florida real estate? We can help! Contact Natasha at Live South Florida Realty, Inc. to begin your search today. In addition, be sure to download the free Florida Home Search app for your mobile device.