Florida Real Estate Market Shows Signs of Overheating

With affordability issues popping up in various cities and steadily increasing mortgage rates, the Florida real estate market is starting to show signs of overheating. Even though the demand for Florida real estate is still high, economists think it won’t be long before the market slows to a near halt.

A survey conducted by Blue Chip Economic Indicators shows that most economists believe that once interest rates hit 7 percent, which they expect to happen soon, sales and Florida real estate development starts will drop by 5 percent. They don’t expect prices to plunge, but say that they won’t increase much either.

This Florida real estate slowdown “will be relatively mild compared with past downturns.” This is due to the fact that “the economy is expected to grow by over 3.5%.”