Lower Florida Real Estate Market Prices Coming
If you don’t absolutely have to own a home in Florida right now, you may be rewarded with lower, possibly much lower Florida home prices within the next few years. Why? In addition to the above reasons:
Recessions have hit regularly for hundreds of years in the US, and the next one is right around the corner. It’s just math.
Major hurricanes are also a normal occurrence in Florida and have an impact on Florida home prices in the counties surrounding the affected areas. The next one is right around the corner (it’s just simple math again). Update: They’ve hit and all those folks who would have left every year for 10 years, but didn’t because of the “hurricane drought”, will now all want to leave at once.
More attention is being paid to sea level rise in a state with millions of properties just a few feet above sea level. That could have a huge impact on Florida homes, insurance and prices. Wait until you see how the insurance companies react to the massive losses they are getting hit with from hurricane and flooding in 2017 and 2018 during the 6 month hurricane season in Florida.
The sales pitch that all those babyboomers are going to buy in Florida and push the prices through the roof forever are ridiculous in my opinion. Most of the people who move to Florida from other US state, eventually end up moving out. So yes, there may be more babyboomers moving to Florida, but that just means there will be more people moving out too. Almost all of them will have to sell the Florida home they bought before they can leave.
If you don’t have to own a home in Florida right now, chances are increasing you will be presented with a much better buying opportunity after the next recession. We have them every 7 years on average. Note: We are currently experiencing the longest period of expansion (time without a recession to correct bubbles) in the history of the US. This current Florida real estate bubble has been hyper-inflating for over 10 years uninterrupted. This next bubble “pop” (both stock market and real estate) could drop prices by the largest dollar amount (even if not percentage-wise) ever in Florida.