5 Signs That Your Florida Real Estate Market is Slowing

While it is impossible to know exactly what will happen in the housing market and when, there are signs to which anyone interested should pay attention. It is also important to remember that not all markets move in the same direction at the same time, so knowing as much as possible about your local market is key. Supply and demand is dependent on each individual market. Orlando, for example, might have a strong market while Tampa and Daytona might be at a completely different level. Below are the five most significant signs to look for as indications of a slowing market.

1. A Rise in Inventory

An increase of houses on the market is a warning sign for a slowing real estate market. This is usually because the homes on the market are not selling quickly, so as new homes are added, the total number of houses on the market skyrockets. This ties into the next important sign of a slowing market.

2. A Buyer Shortage

While there could be a variety of reasons for the decrease in buyers, the fact remains there are fewer buyers buying houses, and that is a major indication of a failing market.

3. Price Drops

Because a slowing market means fewer buyers, sellers must compensate by lowering prices to entice the buyers that are out there. Because the housing market cannot be outsourced, it will closely parallel the overarching economic status of the nation.

4. Economic Shifts

It is important to make note of the state of the union to get a sense of the big picture climate, because the overarching economic state generally trickles down to smaller markets. When a country’s economic status is positive, people are more willing to spend or invest money, and home sales increase. The strength of currency and the stock market are good gauges for the health of the housing market. Even changes in the political situation of the country can have an impact on the housing market because new policies or taxes might be instituted. On a smaller scale, Florida’s economy will likely mimic the strengthening or slowing of its housing market, so pay attention to the status of the state’s economic situation.

5. A Decrease in Permits

When analyzing the growth or slowing of a housing market, be sure to observe the sales of pre-existing homes as well as the creation of new houses. As a Realtor, you should keep a running record so that you can detect changes in those numbers. In Florida, the market slow might be delayed compared to other areas of the country, due to permits being pushed back after the hurricanes of recent years. However, many of the previously mentioned signs are becoming increasingly apparent.