Will Interests Rates go down in 2023?

Miami real estate is hot and if you want to invest there, it’s essential you know what the housing market predictions are for 2023.

What is the housing market like in Florida today, and what factors make the State attractive to Americans.

Florida real estate is still one of the most desirable locations to live, regardless of politics and the economy. The climate, low tax, increased entrepreneurialism, and a pro-business attitude, keeps drawing real estate investors and home buyers from everywhere.

In August 2022, Miami home prices were up 22.6% compared to 2021, selling for a median price of $515K, and on average, homes in Miami are selling after 46 days on the market.

New York homebuyers searched to move into Miami more than any other metro followed by Orlando and Boston. Philadelphia, Atlanta, and Washington are also cities where many buyers are moving from. Florida cities like Miami, Lakeland, Naples, Punta Gorda, The Villages, and Cape Coral, remain the hottest destinations for buyers in August 2022.

What’s Next for the Miami Housing Market

There is pent up demand and low construction numbers. Mortgage rates could trickle to 7% over the next few months and any drop rates tends to stir up buyers quickly. Fannie Mae predicts it won’t be until 2023 that home values recovers to the pre-pandemic appreciation rate of 5%. According to the National Association of Realtors (NAR), the average price of houses now is 45% higher than in March 2020. CoreLogic predicts that Miami home prices should go up by 9.8% by April 2023.

Foreign nationals continue to lead investment in South Florida – the No. 1 destination in the U.S. for foreign buyers. With both local and international investors snatching up homes in Miami, experts predict that inventory will be low in 2023. With rentals in the Florida housing market expected to rise next year, potential buyers will be have to choose to either ride out the rental increases or buy in hopes of refinancing in the near future. Only time will tell.

Will Home Prices Drop in 2023?

Due to out of state homebuyers with high liquidity as well as foreign nationals buying up properties in Florida all cash, and inventory remaining low, raising the prices of said homes.

When inventory is low, prices go up. If competition continues, prices will keep rising in 2023.

Source https://www.mashvisor.com/blog/miami-housing-market-predictions/