With 2021 coming to a close, it’s time to look ahead to 2022. Many factors will determine the state of the real estate market throughout the year. So, it is impossible to say for sure what will happen in the coming year, but we will look at the predictions for Florida’s real estate market in 2022.
According to the U.S. Census, in 2020, Florida reached a population of 21.5 million. That’s an increase of 14.6% over a 10-year period. This trend continued during 2021 and is expected to continue during the new year. It is due in large part to the after-effects of the pandemic. Due to COVID-19, many people began working remotely, which means they can work from anywhere in the world. This ability allows people to make moves that they usually would have had to wait until retirement to make.
Florida is also seeing an influx of new residents because people, especially millennials, are moving from costly cities to areas like Florida, where their money will go further, and they can enjoy a slower pace of life.
Other factors contributing to an increase in Florida’s population are:
- A growing number of professional women who are buying homes on their own
- International buyers who are interested in purchasing property in Florida
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Shift in Demand
Since 2020, the lack of inventory has been glaringly evident. However, the truth is, the supply of new homes has been behind the population growth for the past 15 years. Although home builders are trying to increase the pace of home production, it is difficult due to the shortage of supplies and labor.
During 2022, sales are expected to slow, and this will be good for the long-term health of Florida’s real estate market. Furthermore, there is expected to be a shift in demand from luxury homes to more affordable houses in the coming year.
Decrease in Competition
According to Florida Realtors, the slower sales pace is positive for both buyers and sellers because it will decrease the competition per home. Sellers may receive less than half a dozen offers versus over a dozen. This is great for both sides because sellers have an easier time deciding which offer is best, and buyers have a better chance at having their offer accepted. This situation makes buyers and sellers feel more comfortable jumping into the market.
Are You Ready? Let’s Talk!
If you’re looking to make a change in the new year, it’s time to start planning now. With over 30 years of experience in Florida’s real estate market, Gitta and her team are ready to help with all of your real estate needs. As Lake Mary’s most trusted realtor, we will help you smoothly and efficiently navigate all of the nuances of selling your home and buying a new one. I’m happy to answer any questions you may have. Please feel free to reach out at firstname.lastname@example.org or 407-330-2181!