Florida Boom Soon to Slow Down

boom

Currently Florida’s robust real estate market is suffering from its own success because of the large influx of investors and other buyers paying cash. This is in addition to the rising interest rates driving up the prices.

There is a spike of new and would-be residents who are pushing up prices so quickly that they causing affordability issues and slowing up contract signings. This is likely denoting a softening market. A raise in price speed is paralleled by the slowdown, so the faster prices increase the greater the market will slowdown. Because Florida is a tourist market, investors are a potential factor because they pay with cash, but they will eventually no longer consider Florida a bargain and look elsewhere.

Many realtors are expecting it to slow up and the market to equalize. This should not worry potential buyers or sellers because the pace of price appraisals are not supporting values. This is still a good sign for the booming market of Southwest Florida because many potential buyers are attempting to escape the cold northern weather. The state and local government have also passed permit extensions that allow builders to continue stalled projects after the recession. This will continually strengthen the Florida market.