Condo Prices will Rise in 2023 in Florida
Posted by Denise Stewart on Thursday, September 22nd, 2022 at 10:57am.
Experts are starting to make their 2023 home and condo price forecasts for 2023. As they do, most agree condos will continue to gain value, just at a slower pace than the prior 3 years. The value gains over the past 3-5 years were realistically unsustainable. Although the news media would have you believe the market for condos is about to crash, the majority of experts do not agree.
Over the past 10 years, the values of condos in the South Florida are has increased by 3-5% annually, with the largest increases being over the lat 2 years.
To understand why experts are calling for appreciation in the condo market in 2023 you only need to consider supply and demand of condominiums in our market. Three factors are driving condo prices upward, and this upward trend should continue for the forseeable future. The lack of supply of condos in our market is an issue we have in Florida, and this should continue based on the number of people moving to Florida annually. There are various reasons why Florida is a destination State for people, but the weather seems to be the main driving factor. Favorable tax treatment is a close second.
Millennials are becoming more and more involved in the home buying process and because they are such a large demographic, demand isn’t going away any time soon.
Lastly, the trend to favor condo living seems to be catching on in our area. With amenities that are offered, and the ease of maintenance, the positives of condo living over single family living seems to be a main factor with young professionals.
The bottom line is that condo prices will continue to increase in 2023, but at a slower pace. Of course interest rates will be a factor, but owning still is cheaper that renting over the long run when you consider all costs associated with owning and renting, along with the appreciation.
If you are looking for a condo, make sure that you consult an expert Realtor that knows the area and is familiar with your needs.