Florida Housing Market in 2023

If you’re considering a move to the Sunshine State, it’s crucial to understand the current state of Florida’s housing market. We’ve delved into the latest data to give you a comprehensive overview of what to expect. While consulting a local real estate agent is highly recommended, these figures and forecasts will offer valuable insights.

Florida Housing Market Overview

Similar to nationwide trends, housing prices in Florida continue to rise, though not as dramatically as in 2021. Here’s a comparison of Q4 2022 and Q4 2021 statistics for single-family homes:

• Median Sale Price:
  • Q4 2022: $400,000
  • Q4 2021: $365,000
  • Percent Change: +9.6%
• Inventory (Active Listings):
  • Q4 2022: 65,786
  • Q4 2021: 30,344
  • Percent Change: +116.8%
• Closed Sales:
  • Q4 2022: 57,004
  • Q4 2021: 85,157
  • Percent Change: -33.1%
• Median Time to Sale:
  • Q4 2022: 76 days
  • Q4 2021: 54 days
  • Percent Change: +40.7%
• Average Mortgage Rate (15-Year Fixed):
  • Q4 2022: 5.68%
  • Q4 2021: 2.33%
  • Percent Change: +143.78%

Major City Insights

Looking at specific cities provides a more detailed view of the market. Here are statistics for Orlando, Tampa, and Jacksonville:

• Orlando
  • Median Sale Price: $422,745
  • Year over Year % Change: +11.2%
• Tampa
  • Median Sale Price: $399,000
  • Year over Year % Change: +12.4%
• Jacksonville
  • Median Sale Price: $386,000
  • Year over Year % Change: +11.2%

Florida vs. National Housing Market

In December 2022, national home listing prices increased by approximately 8.4% compared to the previous year. The top three states with the highest year-over-year increases were Nebraska (32%), Wyoming (31%), and Kansas (29%). Florida’s growth, at 9.1%, appears comparatively modest.

Predictions for 2023

1. Market Stabilization

   • Experts anticipate a return to a more balanced market in 2023, resembling the pre-pandemic years of 2018–2019. Supply and demand are expected to find equilibrium.

2. Price Moderation

   • While prices may ease, a significant drop is unlikely without a substantial increase in supply. A flood of new construction is improbable.

3. Sustained Demand

   • Despite economic challenges, the desire for homeownership remains strong, especially among young adults seeking stability.

Florida Real Estate Forecast for the Next Five Years

According to U.S. News and World Report, predictions for 2027 suggest stability in the housing market. The median home sales price and mortgage rates are expected to align with current figures. However, long-term forecasts are subject to change.

Conclusion: Personalized Decision Making

While understanding market trends is crucial, your decision to buy or sell should be based on your individual circumstances. Financial preparedness is key, including being debt-free, maintaining a robust emergency fund, and having a substantial down payment.

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