{"id":33068,"date":"2022-09-15T12:10:20","date_gmt":"2022-09-15T19:10:20","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=33068"},"modified":"2026-04-06T07:05:23","modified_gmt":"2026-04-06T14:05:23","slug":"florida-real-estate-market-forecast-2022","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/florida-real-estate-market-forecast-2022\/","title":{"rendered":"A Changing 2022 Florida Real Estate Market Forecast: What’s Still to Come"},"content":{"rendered":"

The U.S. housing market is undergoing a rebalancing. Visit <\/i>HomeLight’s 2022 Housing Trends Hub<\/i><\/a> for information on how to navigate a shifting market \u2014 whether you’re a seller, buyer, or homeowner.<\/i><\/p>\n

The Florida real estate market is shifting quickly. Everything from inflation and interest rates to new migration patterns, inventory, and more could reshape the Florida housing market in 2022.<\/p>\n

If you plan on buying, selling, or owning a home in Florida, the decisions you make now could pay off for years down the road. That\u2019s why we\u2019ve dug into the data and asked Florida housing experts to forecast the upcoming year.<\/p>\n

In this Florida real estate market forecast, we tap into expert insights to pinpoint what Floridians can expect within the Sunshine State for the remainder of 2022, along with how upcoming trends<\/a> could impact your home buying and selling plans.<\/p>\n

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What to expect from the Florida housing market for the rest of 2022<\/h2>\n

With everything from supply chain shocks to rising mortgage rates<\/a>, inflation, and more rocking the Sunshine State, the Florida real estate market<\/a> could be in for dramatic shifts this year. Here\u2019s what the experts forecast will happen to the Florida real estate market during the rest of 2022:<\/p>\n

Florida home prices may tick lower<\/h3>\n

Florida home prices have skyrocketed lately. According to Trading Economics<\/i>, Florida\u2019s All-Transaction House Price Index<\/a> streaked to record highs in January of 2022. However, Elaine Samaan<\/a>, a top real estate agent in Jacksonville, Florida, says prices are showing signs of softening.<\/p>\n

\u201cAcross the board, we\u2019re starting to see price drops, but, in my opinion, I don\u2019t think it\u2019s bringing it down below value,\u201d she says. \u201cI think sellers are just starting to realize, \u2018Just because my neighbor got $60,000 over value on their price, it doesn\u2019t mean that\u2019s what market value is.\u201d<\/p>\n

Ken H. Johnson, Ph.D<\/a>., a real estate economist and associate dean of graduate programs at Florida Atlantic University, says he sees room for Florida home prices to come down in 2022.<\/p>\n

\u201cIn the eight or nine Florida metros where we measure, what we see is that prices are significantly above where they should otherwise be, based on a history of prices,\u201d he says.<\/p>\n

However, Dr. Johnson doesn\u2019t believe housing prices will free-fall like they did in the last housing crash.<\/p>\n

\u201cYou\u2019d think we\u2019re wildly exposed to a potential downturn,\u201d he explains. \u201cHowever, many of us believe that Florida is not set up the way it was during the last crash. There\u2019s a huge inventory shortage this time around, and people are moving to the area in massive numbers.\u201d<\/p>\n\n\n\n\n\n

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What's Your Florida Home Worth Now?<\/h3>\n

Get a near-instant real estate house price estimate from HomeLight for free. Our tool analyzes the records of recently sold homes near you, your home’s last sale price, and other market trends to provide a preliminary range of value in under two minutes.<\/p>\n \n

\n Get Estimate <\/a>\n <\/div>\n <\/div>\n<\/div>\n\n\n

Florida home values should hold steady<\/h3>\n

Although he says Florida home prices will likely fall off their near-term peaks, Dr. Johnson doesn\u2019t expect Florida home values to dive dramatically. That\u2019s because people are rushing to Florida at high rates. According to a Demographic Estimating Conference report, Florida\u2019s population<\/a> is expected to grow by more than 300,000 people per year and surpass 23 million by April 2025.<\/p>\n

Meshell Perry<\/a>, a top real estate agent in Jacksonville, says she\u2019s seeing population booms impact home sales now. \u201cWe still have a huge influx into Florida from people from California, New York, New Jersey, and all over the place.\u201d<\/p>\n

As people continue to flock to Florida<\/a>, home prices may recede from historic highs, but experts say home values should stay steady.<\/p>\n

\u201cI think the market is still continuing to find its ground, but I do think overall home values are up a lot,\u201d explains Samaan. \u201cI think, overall, the net equity in homes has definitely gone up. For the future, if you\u2019re thinking about holding on or waiting, I think you\u2019re still in a good place and the market is still strong.\u201d<\/p>\n

Florida mortgage rates are rising<\/h3>\n

Florida mortgage rates are climbing<\/a> in 2022. According to a Time report, the average rate for a 30-year fixed mortgage<\/a> in Florida rose to 5.8% in August. Some experts believe those rates will hit 7%<\/a> in 2022. However, even if mortgage rates rise, they\u2019re likely to remain well below historic highs<\/a> \u2013 which popped above 18% in September and October of 1981<\/a>.<\/p>\n

\u201cWhile 5% feels scary, it\u2019s still extremely low when you look at the trend for 30-year fixed-rate mortgages over the years,\u201d points out Samaan. \u201cYou can always refinance if rates drop to that historic low again, and if not, thank goodness that you got in when it was still at 5% and not 18%.\u201d<\/p>\n

Available inventory in Florida could dry up<\/h3>\n

Housing inventory is low across the country. According to Florida Realtors<\/i>, just to keep up with household growth, the U.S. would need to create 3.8 million housing units<\/a>. And experts say shortages could hit Florida even harder in 2022.<\/p>\n

\u201cWe\u2019re just not building fast enough,\u201d explains Dr. Johnson. \u201cIt always takes time to build, but we\u2019re building at a pace where, maybe for every two houses we need, we\u2019re building one. We\u2019re just falling behind.\u201d<\/p>\n

\n That means, as high construction costs loom and the population grows, Florida could face substantial inventory declines in 2022.<\/q>\n
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