Some expect Florida’s residential real estate market to return to a more “typical pace.” This, after two years of boom and one year of bust.
Florida Realtors Chief Economist Dr. Brad O’Connor is one of them. O’Connor said the 2023 market should “look more like the ‘traditional’ housing market years of 2018-2019 in Florida as supply and demand become more balanced.”
This was at the 2023 Florida Real Estate Trends summit. About 500 real estate professionals gathered last week to discuss the state’s housing market.
O’Connor said he doesn’t expect to see a huge price correction this year. This is mostly due to the state of supply in relation to demand.
“We are going to see some relaxing or easing in prices, but we’re not going to see a great drop unless or until we see more supply available,” he said. O’Connor also said buyer demand in the coming months will “continue to be challenged by insurance costs, mortgage rates – especially if rates start rising again to 7% or higher – and ongoing economic uncertainty that erodes consumer confidence.”
Dr. John Leer, Morning Consult chief economist also spoke at the summit. He said it’s going to take some time for consumer confidence to return to past levels. He noted that inflation will continue to be a barrier for many. He added that housing and homeownership remain a top priority for many consumers.
“Buyers are still waiting in the wings, interested in purchasing a home as soon as they’re able to do so financially,” Leer said.