It has been an interesting few months to say the least in regards to Florida real estate market. The market has been running very hot for the past 24 months with prices increasing at record pace. This is partly due to Federal reserve policies keeping rates very low for a long period of time. Inflation has been running very hot (Highest in 40 years) and now Fed has to adjust their policies dramatically in order and get inflation back under control and rein it in. By increasing interest rates, borrowing will be reduced and spending will slow down. This would in effect shrink the demand side pressure which is pushing the prices up.
In my opinion, the fed will have to increase rates dramatically and consistently in order for the brakes on inflation to catch.
Having said all that, the demand for housing has somewhat slowed down but for the most part people are still Buying. I think this is because US households are still flush with cash and real estate still remains a safe asset for protection. Locking in long term debt before further rates increase has been a motivating factor among Buyers.
Florida also remains a very popular destination due to our attractive weather and relaxing lifestyle. Orlando has been ranked 8 in the country.
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