A recent report from CoreLogic out last month forecast growth in nationwide home prices to drop one percentage point due to higher interest rates impacting mortgages across the country. Overall, the market looks to cool compared to 2018. In the Florida market, mixed signals indicate a stagnancy at best, but price leveling may well create a domino effect for investors.
In an article at The Real Deal last month, experts predicted that prices in South Florida's luxury market would continue to tumble in 2019. At the heart of this sagging market, oversupply has caused a logical dip as sellers have been forced to drop in order to float inventory. A report by the Miami Downtown Development Authority showed average resale prices for condos falling to $392 per square foot from $405 per square foot at the end of 2017, with an increase in inventory of 28,000 condo units by the end of Q2 of 2018.
In the aforementioned story, Edward Easton, founder
"The continued expansion of e-commerce heightened in 2018 and is only expected to continue heading into 2019. With the expansion comes the need for facilities that accommodate a denser distribution network. With scarce land available, infill opportunities have become viable alternatives and creative architectural designs such as multi-story last-mile distribution centers are being considered."
News Triple Five Group gained approval from Miami-Dade County commissioners to build the largest mall in America adds an uptick to Easton's commercial prediction as do 8 other megaprojects in the works.
In Central Florida the "mixed message" of South Florida is echoed. On the one hand, commercial projects and residential housing starts are reacting to the $10 billion-plus in infrastructure projects underway in this region. In
downtown Orlando alone, there is more than 1 million additional square feet of construction underway. As for single-family and multifamily housing developments, the third-quarter of 2018 saw an increase of housing starts of 15% over third-quarter 2017. But, this may end in a pricing fiasco like the Miami luxury market suffers from in 2019 if oversupply becomes an issue.
Across other areas of
Escambia County in the panhandle prices in 2018 went up as low inventory peaked demand and a pricing war. Santa Rosa County saw a similar situation accentuated by sluggish housing starts. This HUD report reveals the situation for Pensacola and surrounds. In
The verdict for Florida in 2019 seems to be stagnant growth, all aspects considered. Fears of