12/15/2021
What Will 2022 Real Estate Look Like in S. Fla.?
By Amber Randall
Experts weigh in, saying prices will keep moving higher – but not as fast – as demand from foreign and out-of-state buyers continues to drive the market.
FORT LAUDERDALE, Fla. – After a year of record price growth in South Florida housing, what does 2022 hold? We asked experts to weigh in on a range of topics, from affordability to mortgage rates to migration and supply and demand.
Home prices will grow, but slower than the past year
Experts predict that prices for homes should increase, but not at the record pace they did over the past year and a half.
“We don’t expect to see the same price appreciation we had last year, though we don’t expect to see a decline in pricing,” said Eli Beracha, director of the Hollo School of Real Estate at Florida International University.
A realtor.com forecast predicts that South Florida housing prices may rise almost 6% over the next year, while a Zillow forecast predicts that home price appreciation could shoot up by 15%.
A few factors are going to cause slower price growth: more inventory as sellers try to capitalize on the hot market, new developments hitting the market and an increase in mortgage interest rates.
Demand from foreign and out-of-state buyers will continue to drive South Florida’s housing market, but experts also expect new inventory to alleviate some of the pressure that has been fueling the pandemic-era housing boom.
“I see a pretty hot market, with a little extra inventory coming into the marketplace. That may affect the balance a bit, but I don’t foresee a huge relief for buyers,” said Patty Da Silva, broker at Green Realty Properties in Cooper City.
On a national level, home prices could grow about 3%, according to realtor.com.
Experts say the market will still favor sellers, as demand and limited inventory will keep the balance in their favor. Bidding wars and multiple offers on homes will probably still be a common.
Another factor in pricing? The supply chain issues and lack of labor. Both will continue to lead to increased construction costs and thus higher prices for buyers, said Brett Forman, executive managing director, eastern U.S. at Trez Capital.
“It is more expensive and the labor, as well as the supplies, are more expensive, so naturally this will lead to price increases from top to bottom making it far more difficult to deliver affordable product,” said Forman.
Source: floridarealtors.org
