5 Reasons Why 2023 Is A Great Year To Buy A Home In Florida

Dated: February 7 2023

Views: 2

5 Reasons Why 2023 is a Great Year to Buy a Home in Florida

Image title

While the Florida housing market has seen a deceleration in the real estate market over the past few months, mortgage rates are beginning to ease and buyers are still navigating very low housing inventory levels.  However, with easing mortgage rates, buyer activity is noticeably picking up again in the Pinellas County and Tampa Bay areas of Florida, as of February 2023.

It’s important to note that buyers who continue to wait for more housing inventory, lower interest rates, or something else may never own a home as our housing market continues to pick up after a somewhat brief slump. In many housing markets around Pinellas County and Tampa Bay, we have yet to see year over year price decreases.

As predicted by economists and lenders around the country, mortgage rates are beginning to fall across the U.S., with rates in the 5.6% range for a 30-year fixed mortgage not uncommon in early February. Combine that with low inventory in Florida and a thriving job market, the downward trend buyers were hoping for may never fully materialize in the Tampa Bay housing market.  However, due to the deceleration we saw in the Tampa Bay housing market over the past few months, there are still sellers out there that are motivated to make a deal right now to get buyers to purchase their home. If that’s not enough reason to buyer a home, keep reading below to find out  about 5 more reasons we think 2023 is a great year for buyers to finally take the plunge and buy that dream home they’ve been waiting for…

Why 2023 Will Be a Great Year for Home Buyers

1. Bidding wars are a thing of the past. The extreme bidding wars we saw in 2020-2022 are now a thing of the past. While the best homes still sell very quickly, buyers are unlikely to pay over asking price for a home now and won’t be up against multiple offers in many cases. Additionally, as our housing market has become more balanced, buyers are able to negotiate repairs and concessions that they wouldn’t have gotten last year. Buyers using financing to purchase a home won’t be up against a pile of cash offers like they were last year as well.

2. The Federal Reserve is hitting the brakes. The U.S. Federal Reserve is slowing down its policy of substantial interest rate increases that were prevalent in 2022.This means more home buyers will be able to purchase a home  with a lower, more manageable interest rate on their mortgage in 2023.  

3. Buyers will have an opportunity to negotiate again in 2023 (and likely into 2024) unless interest rates experience another massive decline (the prediction is for mild declines at this point, to a balanced level).

4. Changing housing market tastes. While single-family homes will continue to be popular, the Florida condo market may see a slowdown as the Milestone Inspection requirements go into full swing and condo communities become subject to special assessments to address deferred maintenance. As monthly dues increase to address new maintenance requirements and rising insurance costs, more deals will likely show up in the Florida Condo Market in 2023. This is a clear opportunity for buyers thinking about a condo near the beaches.

5. Strong signals from the stock market. Across the U.S., there seems to be a general sigh of relief that the worst has passed. Many believe inflation and interest rate hikes have peaked and that the financial and housing markets will become more balanced in 2023.

So What Should Buyers Be Doing Now?

Potential home buyers should be prepared financially when they find the perfect home or when a good deal arises in the areas they’re searching in. Remember, sellers with homes that have been sitting on the market for over a month may be much more motived to make a deal, but as more buyers enter the housing market again, the best homes will go quickly.

Before beginning your home search, make sure you have a pre-approval from a reputable lender and know what your budget can tolerate in terms of a monthly home payment. When the perfect home comes up, be ready to move on it.

The Sandy Hartmann Group

Coastal Properties Group and Christie's International Real Estate

Blog author image

Mike Hall

Born and raised in the Midwest, Mike Hall has a passion for helping buyers find the perfect homes in the Tampa Bay area. When Mike isn't working, you can often find him walking his 3 dogs around town,....

Want to Advertise on this Site?

Latest Blog Posts

5 Reasons Why 2023 Is A Great Year To Buy A Home In Florida

5 Reasons Why 2023 is a Great Year to Buy a Home in FloridaWhile the Florida housing market has seen a deceleration in the real estate market over the past few months, mortgage rates are beginning

Read More

Small Business Spotlight With Mandi Tucker And Salon 131 In Seminole

Small Business Spotlight: Mandi Tucker And Salon 131Sometimes the best business ideas come from the people you are closest to, after all they often know you best. In the case of Salon 131,

Read More

Everything You Should Know About Florida Prepaid College

Everything You Should Know About Florida Prepaid CollegeFlorida Prepaid College Plans and Why You Want It For Your KidsNew to the idea of Florida pre-paid college for your kids and want to know

Read More

7 Tips For Owning A Vacation Rental Property In Florida

7 Tips for Owning a Vacation Rental Property in FloridaThinking about investing in a vacation rental property in Florida? When it comes to owning a vacation rental, the profit potential and having

Read More