In this article, I'll tell you what I think we can expect from the real estate market in the United States in 2023, especially in Florida.

Florida has a unique market because it receives a lot of foreign investment and also because of the strength of tourism, which has a direct impact on the real estate market.

Anyone who follows the American economy has seen that not only has inflation taken hold in the United States this year, but the Fed has also raised interest rates considerably.

This measure was really taken to curb the real estate market which, after the pandemic, was extremely heated and truly crazy.

A moment never seen before by any professional in the field.

Consecutive increases in interest rates caused buyers to lose their purchasing capacity.

Also, so that people who bought with good interest rates would have no motivation to sell their homes.

Sellers who came motivated post-pandemic, were asking the amount they wanted in house prices, because they knew they would sell anyway.

In the second half of 2022, this led these sellers to realize that the prices did not represent the real value of the house.

As a result, prices began to be readjusted.

I can say that real estate has appreciated considerably in the last two years.

According to Realtor.com, in 2021 there was an appreciation of 17%. In 2022, 10%. 

In other words, there was an excellent appreciation, giving the market a new real price standard.

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What can we expect from the real estate market in the United States in 2023?

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Certainly, values will not rise in the same way as they did in 2021 and 2022.

We can see a slowdown in prices and this stability should be maintained for 2023.

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In some regions and specific areas of the country, there may be a reduction of up to 20% in real estate prices. 

But this will depend a lot on the local government, the local unemployment rate and, of course, the price range of that property.

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What are the expectations for the real estate market in Florida?

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But when we look at Florida, which is an economically and politically strong state and also has intense tourism, we can say that it doesn't just depend on the local market.

It also reacts to the many foreign investments that keep this state in good real estate deals.

Florida also has the lowest unemployment rate compared to the American average.

We're talking about 2.5%. This gives people a sense of security and stability, both financially and emotionally, so that they are no longer afraid to spend.

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There is also an American population that chooses this state to migrate to, both because of the lower cost of living, greater openness to trade, investment in technology, education, sports and, of course, a state with no state tax costs.

Plus, it's much easier and cheaper to have the companies here and the possibility of having all the employees relocated.

So what I believe will happen is that in Florida we may have a stable market, without many gains, but still a strong real estate year, because there are many people migrating to the state, including foreigners immigrating.

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Because of this, buying and selling real estate will always have a place.

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Another point to mention is that the people who are in their homes, who have already bought with excellent interest rates, are unlikely to leave them until the FED starts to readjust interest rates.

They will therefore have more opportunities for new homes, considering that construction is in full swing.

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Considerations for the American real estate market in 2023

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I think we'll see better incentives from the builders to close the houses, but I hardly think they'll touch property prices.

The 2023 market will be for the buyer who:

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You need to buy a property to dollarize your assets;
You want to diversify your investments;
You are relocating from another country or another state.

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Those who simply want to move house will wait for the real estate market to become more stable.

Especially in terms of better interest rates.

Like everything in life, the market is cyclical. 

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Soon, we'll be saying that the market is better for sellers than for buyers. And so it goes...

I hope this article has helped you decide whether or not to invest in the Florida real estate market.

But I always say: with every investment, you need to think long-term and you will always come out ahead.

Life doesn't have a rear-view mirror, so the sooner you invest, the more you'll gain from the appreciation of the property and the exchange rate (if you're a Brazilian investor).

My team is made up of experts who, like me, can support you in your decision-making. Contact us by clicking here.

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I invite you to watch the video "What to expect from the Florida real estate market in 2023?"

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