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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]OP, these are the types of areas that will see significant decreases in home values. This bubble was about low interest rates/FOMO. Even desirable areas with good public schools, jobs, and lots of UMC/UC people (like Central Florida) didn't see much of a net population increase during the pandemic. Prices are coming down even there. Florida real estate tends to have huge spikes then huge decreases.[/quote]

I used to agree with you, but if you look at the numbers, [b]there are like 1,000 people moving there every day[/b]. It’s not slowing down where I am and it won’t until the supply outstrips demand for housing. [/quote]

But that's been going on for a while. There still wasn't population growth even during the pandemic, and there's a very low population growth projected for the next 5 years. Anyway, prices have already decreased in Central Florida, even the desirable areas and homes sit on the market much longer than they used to. It's foolish to think that rising interest rates won't continue to affect home values.[/quote]

I am in the market and am not seeing this. Nice houses in the best parts of Central Florida still go under contract quickly and prices are still like 50% higher than they were 3 years ago. You can also get rates in the 5s right now. I’m not so sure prices will drop significantly. [/quote]

Yes, prices are higher than they were 3 years ago. But for most areas they're less than they were April of 2022. The large, updated $2M+ homes sit for a little while instead of going under contract within 24 hours. But they're still going under contract. Homes that need work are sitting. Smaller homes are sitting quite a bit then selling for much lower than one year ago.

My guess is that interest rates are hitting the middle class buyers much harder. The wealthy are plunking down cash for their $2-3M homes. Construction costs are still high, but contractors seem to be more willing to negotiate price. New builds are sitting a long time. Most of them don't go under contract until they're almost finished. They used to go under contract when they hit the market, before construction started. People don't want to pay today's prices for tomorrow's homes. The wealthy don't want homes that need work and the middle class can't afford to get the work done. Some UMC people are still doing renovations and additions. The group who don't have the budget for the $2M+ homes, but don't want to live in a small home and can afford something in between.

The Spring market is happening now, and the only market that seems to be moving well is the $2M+ market. My guess is that prices will continue to drop for everything below that and probably for that market too.[/quote]

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