Florida’s economy has bounced back from the pandemic quicker than most — which economists’ credit in part to a surge of people buying homes in the state. “The coast is most exposed to dramatic swings. Coastal communities are the canary in the coal mine,” said Florida Atlantic University economist Ken H. Johnson. Real Estate is one of Florida’s greatest strengths — with nearly 20 percent of the state’s gross domestic product based on home sales and rent. Tampa Bay’s housing market hasn’t slowed in the last month even as mortgage rates rose in an attempt to cool activity. The hike may even be pushing more people to buy homes during this busy spring season to lock in a lower rate before they go up even further. Home values in the region have risen by 29.1 percent since March last year University of Tampa economist John Stinespring. “If population growth continues to exceed the dampening effects of interest rate increases, we wouldn’t anticipate a bubble bursting.” Human nature hasn’t changed; people still want a place near the beach.
Economic uncertainty is causing mortgage rate volatility. As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue.
