Will the Florida Housing Market Crash

If you're considering a move to Palm Coast, Florida, you may be wondering about the stability of the housing market. After the 2008 market crash, it's natural to have concerns about a potential repeat. However, in this article, we will explore why the housing market in Palm Coast is highly unlikely to crash anytime soon. We'll examine the current state of the market, including factors such as housing inventory, equity, and new construction. So, if you're interested in learning more about the housing market in Palm Coast, keep reading!

The housing market in Palm Coast, Florida, is different from what it was in 2008. One significant difference is the amount of equity homeowners have in their homes today compared to back then. Additionally, the inventory of homes in the market plays a crucial role in determining its stability.

Housing inventory comes from three primary sources: homeowners selling their homes, new construction, and distressed properties such as foreclosures and short sales. Currently, Palm Coast has a relatively low housing supply, with about a 2 to 3 month supply compared to the ideal 6-month supply for a balanced market. This means that there are not enough homes available on the market to significantly reduce home values.

To experience a housing market crash similar to 2008, there would need to be a significant increase in the number of people selling their homes and a decrease in the number of buyers. However, that is not the case in Palm Coast at the moment. The low inventory suggests that there is still a high demand for homes, making a market crash unlikely.

While there may be a perception of increased activity in new construction, historically, Palm Coast is experiencing a 14-year low in terms of new construction homes coming onto the market. The rate at which new construction homes are being built is not fast enough to offset the low inventory of existing homes. Therefore, the overall housing inventory shortage is not expected to flip into a surplus anytime soon.

Another contributing factor to the stability of the housing market in Palm Coast is the low number of distressed properties, such as foreclosures and short sales. Homeowners today have more equity in their homes, and lending standards have tightened, resulting in fewer people being overextended on their homes. As a result, Palm Coast is experiencing historic lows in terms of distressed properties on the market.

Based on the current data and trends, there is no indication that the housing market in Palm Coast, Florida, is heading towards a crash. While the market is shifting and becoming slower compared to the peak pandemic period, it is still a healthy seller's market with more buyers than available homes. Home prices have rebounded across the nation, and there is confidence in the solid investment value of purchasing a home.

Want to know more? watch this video from our YouTube, Palm Coast Florida Living.