There are 2 main situations that could play out over the next few years:
- Prices continue to go up as the country continues to recover from the pandemic. The home you buy has now become more valuable… Hooray!
- The economy recovers from the coronavirus pandemic and the fed raises interest rates. Home prices start to fall as buyers are less motivated by low-interest rates.
There has been a lot of talk about the real estate market in Florida. Real estate prices are on the rise, and many people are wondering what to expect for future home prices. The truth is that no one knows for sure, but there are some educated guesses to be made based on recent trends and data sets. This blog post will take you through everything you need to know about Florida Real Estate!
Just how has Florida Real Estate changed over the past 2 years? Where are Florida Real Estate prices headed in the near future? What will home prices be like for people hoping to buy a house in Florida this year, or next year?
Home prices across the United States are currently soaring, and Central Florida Real Estate is no exception. Since 2014, home prices in Florida have risen by an average of $17,000 each year! Our agents don’t expect that to be changing anytime soon.
In fact, our agents expect home prices in Florida to continue rising for the foreseeable future. They predict that Real Estate values across the state will increase by another 5-10% this year alone!
For the next few years, Florida Real Estate is expected to remain in high demand among buyers as many people from across the country are relocating to Central Florida. West Volusia County and DeLand have become somewhat of a boomtown area with new HOA’s consistently coming online.
The decision for first-time homebuyers has started to seem somewhat speculative, it’s a scary decision to make, and the choice to buy property instead of rent may seem like a gamble. What if price homes drop considerably? What if interest rates go up? What if, and this is a big one, your home value doesn’t increase over an extended period of time?
What we like to encourage first-time buyers to do is to look at loan affordability vs current rent. If your rent is higher than your calculated mortgage payment, and you have an average/above average credit score, you should consider buying. You’ll be able to build equity much faster if you were to buy a property.
First-time homebuyers in Florida may be looking at the high prices out there right now and wondering if they should wait for the prices to drop. Our point of view is that while the interest rates are so low, you should take advantage of the opportunity and purchase now. We say this because there are 2 main situations that could play out over the next few years:
- Prices continue to go up as the country continues to recover from the pandemic. The home you buy has now become more valuable… Hooray!
- The economy recovers from the coronavirus pandemic and the fed raises interest rates. Home prices start to fall as buyers are less motivated by low-interest rates.
Take a look at the graphic alongside to illustrate the choice between buying a home now, at a higher sticker price, or buying the same home when interest rates have increased.
It may sound cheesy, but in our agents’ opinions, the best time to buy really is now. No one can never predict what’s going to happen in the market, but you can be sure that it feels a lot better to be paying off your own mortgage than to be paying someone else’s!
Next Up:
One other aspect of Florida Real Estate that remains somewhat uncertain is the potential impact of hurricane season. The Atlantic Hurricane Season begins on June first and runs through November read about how you can stay safe here: https://greenemanagement.com/blog/tenants-preparing-for-a-hurricane/
