Will Home Prices Drop In Massachusetts

Published on June 24th, 2023

Both the national housing market and the Florida housing market have been nothing but crazy over the past two years. Housing prices have skyrocketed since the start of the COVID-19 pandemic, and real estate as a whole has been tricky for buyers to navigate with the rising interest rates.

Many are looking ahead to 2023, wondering what might be in store for the Florida real estate market and what some Florida housing market predictions might be.

Throughout this article, we will discuss what to look out for as an out-of-state buyer, an in-state buyer, and a seller moving into 2023. We will also discuss the current housing market, housing affordability, and what a balanced market could look like in the future.

When Will Home Prices Drop In Massachusetts

Unlike other areas of the country, Florida's housing market, in particular, South Florida and Miami Dade County, are predicted to rise 3.4% in 2023, according to a new Realtor.com forecast. 

Home sales and the median sale price of active listings in this area should see a slight increase - nothing too alarming for buyers of single-family homes or for a real estate agent. Florida home prices are not set to decline of suffering a housing market crash in 2023 if the current predictions hold true.

While the major metros will see a slight rise in prices on the current housing inventory, other housing markets will see a balance out of the median price of homes throughout the Florida market. If prices do start to drop, it will be more of a leveling out into the fourth quarter with fewer home sales and decreased buyer demand for the sunshine state.

How Long Will Home Prices Continue To Drop In Massachusetts

House prices in many Florida markets will not drop at all but only continue to rise against the current national average of decreasing home prices - why?

There is a high demand and economic growth within Florida as many real estate investors and buyers, in general, want to move to Florida, creating a housing boom for Florida realtors.

Disney World, low property taxes, economic activity, and other factors are bringing a demand for more housing in Florida preceding pre-pandemic levels in many areas, including Port st, Orlando, Miami, Fort Meyers, Jacksonville, Deltona, and Tampa.

How Much Will Home Prices Drop In Massachusetts

The remaining buyers in the Florida housing market will need to pay close attention to the market predictions for 2023. The first half of the year might look something like this Floridarealtors.org report, as noted below.

• Jacksonville: Sales down 3.0%, prices up 4.6%

• Miami-Fort Lauderdale-West Palm Beach: Sales down 2.0%, prices up 3.4%

• Lakeland-Winter Haven: Sales down 5.0%, prices up 1.6%

• Orlando-Kissimmee-Sanford: Sales down 8.5%, prices up 2.9%

• Cape Coral-Fort Myers: Sales down 5.9%, prices up 0.1%

• Tampa-St. Petersburg-Clearwater: Sales down 15.6%, prices up 3.9%

• Palm Bay-Melbourne-Titusville: Sales down 18.3%, prices up 2.8%

• North Port-Sarasota-Bradenton: Sales down 28.7%, prices up 3.2%

Many Florida buyers will be searing the market for a three-bedroom two-bathroom house with a single-level design due to increasing age and easy access to nearby health care systems.

These older buyers will be unaffected by the unemployment rate and will be able to purchase the same home a first-time buyer is looking for in cash, making them also unaffected by higher mortgage rates.

Will Home Prices Drop When Mortgage Rates Increase In Massachusetts

Moving into 2023, many buyers are wondering if the higher interest rates imposed by the Federal Reserve to combat inflation will affect the market. The key issue here is that many Florida buyers in the housing market are cash buyers due to their age year over year.

According to market reports and predictions for 2023, it seems as though the mortgage rates increase will not affect house prices as it has in many market settings across the country.

Will we follow the trends of the rest of the country with declining home prices to compensate for rising interest rates, or will we be a rarity and see a rise in home values and prices despite the inventory/supply issues and rising interest rates? Only time will tell!