What does the South Florida real estate market look like in 2022?
PALM BEACH GARDENS, Fla .– One of the big questions looming as the New Year approaches is whether the Florida real estate market will cool down at all.
Helen Powers decided during the pandemic to leave New York behind
âI was in Manhattan. It was a tough time, so I decided to take this opportunity to come here permanently,â Powers said.
She said she was looking for space and what many call freedom in Florida.
âI think it’s the ability to be on the outside, the ability to do what you choose when you want to,â she said. âI lived in Manhattan, and it was dangerous, dirty and a little depressing. It also looked, in the midst of the pandemic, like the apocalypse. It was very scary.â
Jeff Lichtenstein, president and broker of Echo Fine Properties, said Florida remains a hot market.
“I think it’s as sizzling as it is on the outside right now,” he said. âI think that’s what’s going to happen. We don’t have any inventory right now. I was looking at the Jupiter Island condo market today, there was one. In PGA, out of 5,000 homes, there are 13. “
He said he doesn’t think Florida is following suit when it comes to a possible market downturn, however slight. Lichtenstein said in Palm Beach County that the median selling price of a single-family home in 2021 was $ 559,500. This is an increase from $ 367,500 in 2019.
âI think we’re going to see a price increase of 10 to 20 percent,â he said. âWe don’t have the inventory.â¦ The main reason is supply and demand, especially in Palm Beach County, east of I-95, east of freeway toll roads that are actually built. “
He said supply and demand remain an issue, the ability to work from home, as well as the influx of COVID-19 make Florida a continuing attraction.
âBusinesses are starting to move here,â Lichtenstein said. “You see this ‘Wall Street South’, where financial institutions are leaving New York.”
He said there is also the perception that Florida has more relaxed guidelines.
“These are the two terms, but it’s also a lifestyle,” he said. “Some people care about money orders, some don’t, but you always go to a restaurant, where here you can sit outside.”
He also said that many people who are here right now for the season are deciding to stay and / or shop since we are in another wave of COVID.
Lichtenstein also said he expects more buyers in a few weeks as those who are cautious and stay at home venture out.
“We could see a frenzy that will start to happen in three or four weeks,” he said.
A national forecast from Zillow projects an 11% growth in home values ââin 2022. That number is down from 19.5% in 2021.
Zillow said it was still a big number and they claimed the sellers would continue to have the upper hand. All of this, they say, is being fueled by a warm southern regional market and work-from-home options.
âOnce you get down here you don’t want to go back,â Powers said.
Some realtors have said there is a slight slowdown right now when it comes to open houses with the omicron surge, but when that is over it will come back to where it was.