According to Redfin, the median sale price of homes in Cape Coral was $400,000 in January 2023, which is a 5.3% increase compared to the previous year. As higher mortgage rates cut into homebuyer purchasing power,. Florida homes are still selling rapidly despite: Interest rate increase, inflation, mortgage rate increase and stagnant wages. Another factor affecting the price movement of the Florida housing market is interest rates. In the forecast, analysts looked at four areas: supply, demand, home sales, and the move to affordability. Be on the lookout for high demand for medical office properties as well as education locations, including private schools, colleges and technical training facilities. We will also discuss the current housing market, housing affordability, and what a balanced market could look like in the future. The average cost of a home in Miami will set you back around$442,258 while the same home in Orlando will only cost you $305,622. Realtor.com forecasts something similar to scenario #2 above: "Mortgage rates will average 7.4% in 2023, trickling down to 7.1% by year's end." 4 The Mortgage Bankers Association, however, projects something closer to Evangelou's scenario #3, with the 30-year fixed rate declining steadily throughout the year, averaging 6.2% in Q1 and 5. . While this makes the property in Florida a great investment, the cost of living is also incredibly attractive. Florida Realtors REALTOR andRealtor are registered trademarks of the National Association of Realtors. Many attribute this to the fact that people are still flocking to Florida to take advantage of the tax breaks and lower cost of living. This encourages more people to invest in the housing market, increasing demand and pushing prices up. Since moving to Florida brings real financial benefits, many expect the housing market to continue growing in 2023. Offer power-buyer options. It depends on the area. Since moving to Florida brings real financial benefits, many expect the housing market to continue growing in 2023. Its difficult to say whether Florida real estate has peaked. However, Ian did affect the supply of homes in Southwest Florida, and that may have an effect on prices in that market.. This allows you to create an additional source of income while keeping the primary investment relatively secure. Price appreciation is slowing down, and agents are reporting that buyers are able to negotiate down easier for repairs and other issues. Florida . A new year is the perfect time to prognosticate real estate matters for 2023. tourists and investors looking to capitalize on the cities economy and vibrant cultural scene. Our building codes and technologies keep getting stronger, she adds. Here are a few reasons why thedemand for Florida real estate has been and is predicted to continue to grow in 2023. This has been one of the biggest factors driving demand for local real estate in Florida. "But, this is not a situation where prices are going to come tumbling down the way they did in 2008/2009." The average median price for a single family home was $400,000 in November, which is a 10% increase from 2021, according to the Florida Retailors Association. This makes it the perfect place toinvest in rental property, especially if you plan to rent on a short-term basis. So there is increased competition (due to people having to leave damaged homes) accompanies by a decrease in inventory (homes that have been too damaged for habitation cant be sold yet) which leads to higher prices. The median price of a home in Florida isaround $382,000. Housing Market Predictions 2023: A Post-Pandemic Sales Slump Will Push Home Prices Down For the First Time in a Decade . According to data from the Florida Realtors Association, the number of active listings in Florida has declined a lot since 2019. Logan Mohtashami, lead analyst for HousingWire, expects a tug of war as buyers seek adjustments in pricing due to higher mortgage rates. This discourages people from entering the housing market, which decreases demand and causes prices to fall. This increase in demand for housing would drive prices higher. The U.S. News Housing Market Index predicts that in the first five months of 2023 will see just under 2,121 single-family homes and under 1,572 multifamily housing units approved for production.