Written by: M. Paula Di Mauro • February 1, 2022• Real Estate

Florida Is Hot, Hot, Hot! Predictions for 2022 Real Estate Trends

What a fantastic year 2021 was in the world of South Florida real estate. Between summer 2020 and summer 2021, over 211,000 people relocated to Florida, in part due to COVID-related concerns. This sudden rush of new buyers left the area with barely any available inventory.

Many clients today ask us: What will happen in 2022? Will prices continue to rise?

Allow me to showcase what I predict will change and what will stay the same for 2022.

The seller’s market will continue, essentially meaning there are more buyers out there than homes available for purchase. Technically it is a measure of absorption. If no new properties were to come into the market, how long does it take to sell all properties available? We call this a month of supply inventory. If this number is less than six months, we have a seller’s market. In Pinecrest and Coral Gables, we currently have less than two months of supply, while at this time last year, we had six months of supply.
We will continue to see a rise in people moving to South Florida as a result of the climate, tax advantages, less stringent COVID rules and overall quality of living. For families from big cities who are used to expensive housing, dense populations and less square footage, South Florida properties are a dream come true. They are accessible, with ample space to work and play at home and isolate comfortably, if needed.
We expect to see more sellers making the decision to list their homes in 2022 than we saw in 2021, as many of them decide to move out of Miami either for retirement, because the city has become too expensive or because they want to capitalize on the increased value of their home and relocate to a more affordable neighborhood or area.
Interest rates are already going up, and experts expect the Federal Reserve to raise them multiple times during 2022 to try to control the highest inflation our country has experienced in the last four decades. This will cool some real estate markets as it becomes more expensive to afford a mortgage. However, we don’t expect the South Florida market to be as impacted by this as other less affluent areas of the state or the country.
Areas like Orlando, Tampa and Central Florida will increasingly become an attractive option for investors looking for rental income and families moving out of South Florida due to raise in the cost of living. These areas offer investors access to newer construction, great ROI and strong rental market.

For more information on market trends, listing your home or purchasing a home, contact a trusted real estate advisor. The team at Urban Key Realty would be pleased to help you make 2022 the year that you capitalize on this hot market!

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