With the new year comes new opportunities to invest in the South Florida real estate market! If you’re thinking about buying a property, or selling your current property, sometime in 2019, it’s important to keep on top of market conditions.
South Florida real estate conditions are expected to shift slightly throughout 2019. This is due in part to changes in the national real estate market, such as rising mortgage interest rates and a slow in the growth of home prices.
However, Florida remains an optimistic and highly valuable real estate market. Continue reading to learn everything you need to know about the changing South Florida real estate market in 2019.
Demand for Homes is Consistently High
Current inventory of Florida homes for sale will grow slowly over the next year. In addition, experts expect home prices to increase by about 4 to 5%. Industry leaders are optimistic about the state of the market in 2019. South Florida has always been a popular place to buy a home, and for good reason.
Florida residents enjoy beneficial tax advantages, including the lack of any income tax. As such, buyers from all walks of life, but especially retirees and “snowbirds” looking for summer homes, are attracted to the South Florida real estate scene.
Current Inventory of Homes is Low
Across the United States, the current housing inventory has steadily decreased over time. This low supply of homes, combined with the consistent demand of homes in areas like South Florida, have created the conditions for a seller’s market.
If you’re interested in selling your South Florida home, it’s important to do some careful market research. A good starting point is finding out what your home is worth. Feel free to request a comparative market analysis from my team and I. We’ll research your home, inspect the market, and compare your property to similar properties in the South Florida area.
Mortgage Rates Expected to Increase
One key factor in the changing South Florida real estate market is the increase of mortgage interest rates. The interest rate for a 30-year fixed mortgage will rise to an average of about 5.25% by December, according to experts.
Growing interest rates are expected to tamper buyer demand, which is why home prices aren’t expected to increase rapidly this year.
Some Key Takeaways for the 2019 Real Estate Market
As a result of ever-changing market conditions, there’s a new demographic of buyers to keep in mind. Many industry experts expect home demand to increase as a result of a newer, and younger, generation taking over the market. Millennials are currently the largest pool of potential homebuyers. In particular, households under 35 years of age are beginning to buy homes in South Florida.
As such, current Florida homeowners can expect home demand in South Florida to remain robust.
Making a Plan for Your Real Estate Ventures in 2019?
We would love to be a part of them! Give our team a call today to discuss all your 2019 real estate plans in South Florida. Whether you’re thinking of buying or selling real estate in South Florida, we’re here to help.
Have a question about the South Florida real estate market? Please don’t hesitate to reach out. I’m always happy to help.
‘Til next time,