Will house prices go down in Florida?

[Jorge Vazquez]

After nearly a year and a half of solid interest in houses, the real estate market in South Florida shows no indications of easing up. Most experts believe the market will continue to boil for at least another year, either well into 2022 or 2023.

[Dwayne Byrd]

Originally posted by @Ronald Allen Barney:

Here in Northern Florida what we've seen is that earlier this year a lot of owner-occupiers snatched up properties at bid-up prices, got all excited to be going into their dream home, and then the bank sent the appraisers out and the appraisals came back at significantly less than the price the house got bid up to, and they didn't have the cash to make up the difference.  So the volatility churn has been, inventory and demand have reset somewhat, with sellers trimming down their asking prices to put them within some achievable range of what they got appraised at, and buyers formerly under contract going back into the market with a more modest expectation of what they should be able to borrow with what cash they are able to put down.  The price "cooling" that some people talk about are not a correction of supply and demand, but enforced down from the banks on high.

Some exceptions are mostly from the New York Metro area where they're as flush with cash as ever and still giving no "effs" for what the bank says as they have plenty of cash to make up the appraisal gaps.  Possibly in a few years the familiar southern twang of the Jacksonville accent will switch to New Yorkerish.

I too am of the opinion that the market will continue to stay hot. I have seen less frantic motions, offers have gone from 30-50 on a great priced property to 10 to 15. Some properties priced exorbitantly priced are sitting for 2 weeks or so. The number of new builds over the past 10 years has been the lowest in recorded history, nearly 397k per year TOO FEW homes built, creates nearly a 4 million home supply issue.

Our Market has traditionally had 3600 to 4000 homes available in a 600k person county. Earlier this year it had got down to 600 homes. Now it is up to 1250 or so homes available. I think demand stays high at least here in Central Florida especially with all of the aerospace jobs coming into our area. I don't have a crystal ball, but my opinion.