With winter around the corner, many Canadians start to pack up and head south. One of the most popular destinations for longer-term relocation is Florida. With all things considered, should you follow the herd, or would you benefit more from a different spot? Today we will be talking about Florida’s real-estate market and different factors potential buyers should know.&nbsp;Before we begin, we should point out that Ontarians aren’t used to storms like the one that just hit Florida. This past week, Hurricane Nicole swept around the United States’ east-coast, leaving two Florida residents dead by electrocution. Thousands were left without power from this storm, a storm whose magnitude has not touched the United States in November in 40 years. One may wonder how this affects the housing market down there.&nbsp;Several researchers have found that housing prices tend to increase after devastating storms. For example, the most recent and most destructive storm studied was Hurricane Ian, revealing record-high prices. Christopher Flavelle&nbsp;from the New York Times says “privately insured losses from Ian are expected&nbsp;<a href="https://www.rms.com/newsroom/press-releases/press-detail/2022-10-07/rms-estimates-us67-billion-in-insured-losses-from-hurricane-ian">to reach $67 billion</a>, not including flood insurance.” Due to the damages incurred, many people have fled the areas. Flavelle also explains how climate change has made insurance so high for many southerners, to the point where they cannot afford a home. Brandon Kochkodin from Forbes says that on average, a hurricane strike can raise house prices 3-4%, up to three years after one hits. Transactions also decrease significantly after a hurricane hits. Eventually though, the market does recover.&nbsp;Aside from this risk, we should consider Florida’s market on a wider scale. According to Norada Real Estate, Florida had an increase in listings and average house prices compared to last year at this time. Transactions of single-family homes decreased 15.8% and the average price for a single-family home increased around 15%. There are several things to blame for this: relocation, insurance rates, inflation, rising mortgage rates, and many more. Because of an immense inventory shortage, prices will continue along this trend for the next little while. So, the low supply and high demand are working together for price increases. Many people are moving into Florida from all over the place; as an attractive retirement spot, people not only move from across the USA but from Canada too.&nbsp;So, what does this mean for you? While selling your Florida home at a time like this would have you in a good spot, you are unfortunately on the wrong end of that deal. According to HomeLight.com, it is not a bad idea to wait; you have the time. In the future, this trend seems to be holding for a while. Interest rates could help out, but they are fighting the forces of limited inventory due to high construction costs and newcomers into the area, according to HomeLight.&nbsp;As a Canadian potential homebuyer in the area, you are probably better holding off for the next little while. There is some hope though, so things will not stay as gloomy forever. Prices are expected to cool off eventually.&nbsp;

Florida Real Estate Market Trends 2022

With winter around the corner, many Canadians start to pack up and head south. One of the popular destinations for longer-term relocation is Florida. 


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