A potential look into the 2023 Florida real estate market.

The Sunshine State has, in our humble opinion, the best real estate opportunities in the country. Ask any real estate agent and he or she will tell you that, despite changes in the market, buying and selling homes in Florida can still be a profitable venture. Of course, there are always ebbs and flows thanks to local and world events. Today, we’re going to look at a global event and how it may affect the Florida real estate market forecast for 2023.

The Ongoing Effect of Russia’s War on Ukraine

It’s amazing to think that a war taking place thousands of miles away could cause problems that would affect not only the United States but also our local housing market, unprovoked invasion like this is basically unprecedented in our lifetime and is reminiscent of Germany’s actions during the 1930s. Let’s take a quick look at how a global conflict like this could affect the Florida real estate market forecast:

Russia’s Impact on the World’s Economy

As soon as Russia invaded Ukraine, shockwaves were felt throughout much of the globe. While overall Russia’s economy is relatively small, it has a huge influence on international energy markets. Some of the effects of the war include record inflation rates, soaring gas and food prices, and an increase in construction supply costs because Ukraine is one of the main manufacturers of windows & window systems for U.S. developers.

Russia’s Ownership of Real Estate in the U.S.

Like other international investors, Russians have been buying real estate in areas across the United States. Many South Floridians are aware of this fact because so many Russian investors have purchased luxury homes in Sunny Isles Beach in Miami-Dade County it’s been nicknamed “Little Moscow.” Sanctions sparked by the war in Ukraine may lead to the offloading of some of these assets, the effects of which are unknown at this time.

Effects of War and Inflation on Forecasts

The negative effects of high inflation have been seen before, and we can only predict that this will continue well into 2023. High mortgage rates give buyers less purchasing power, which often means that people will continue renting. Investors do have some opportunities, such as purchasing rental properties and/or obtaining homes that go into foreclosure.

What Does the Future of Florida Real Estate Hold?

The question on a lot of people’s minds is whether we’ll see a housing market crash in 2023 and how that will relate to a Florida real estate market forecast. The truth is that making Florida housing market predictions isn’t an exact science, and even the most experienced professionals have been wrong.

Here are a few ideas of what the future may hold:

Interest Rates Could Reach up to 9%

The consensus is that as the U.S. fights back against inflation, interest rates will continue to increase. This is based on historical numbers related to the times when we’ve had high inflation, so this is very likely a guarantee. We may even see interest rates go as high as 9% or at least close to it, which will lead to low supply and even lower demand. In other words, higher mortgage rates could have us looking at a flat market.

Buyers Are Cautious but Optimistic

But wait! It’s not all doom and gloom. The truth is that when we look at birth rates, they reflect a steady influx of new buyers in 2023 and every year after that for several years. The effects of this are causing some optimism in various real estate markets, but buyers are continuing to be cautious.

Some would-be home buyers may not like the idea of waiting for another year, so they may boldly push forward with a purchase.

A Strong Spring 2023 Real Estate Market?

Perhaps this is a bit too optimistic, but it’s very possible that we’ll see a relatively strong real estate market in Florida in early 2023. This often happens in the beginning of a year after a tumultuous prior year. The problem is that the market is so volatile right now that this could be completely off-base. As shifts occur, though, we’ll keep you informed as much as possible.

Contact Marlin Title Company for more info on the Florida Real Estate Market Forecast

Marlin Title can help protect your property and assist you through the buying and selling process. If you have any other questions about the Florida real estate market forecast or need our title company, title search, or escrow services, reach out to us at (727) 791-7000 today.

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