The Islamorada residential real estate forecast is still fairly good, but will probably face some big challenges in the coming months. However, this could suddenly shift, when the buying and selling season arrives next year. Right now, the market remains strong and quite active. Although, it will likely cool as the year winds down. So, read on to learn more about the Islamorada residential real estate market and what may transpire through the remainder of this year and into the next.
The Islamorada residential real estate forecast is somewhat uncertain right now, given emerging factors that have still to manifest. These circumstances will probably take several weeks or even months to show their impact. So, it’s difficult to predict exactly how the local real estate market will react. But, looking at previous data does give us a window into the most likely scenarios.
Before we get into those yet-to-unfold factors, let's first take a look at the current residential real estate market in the area. Currently, the meeting listing price in Islamorada Florida stands at $1.5 million, which represents a 36+% increase over last year. Meanwhile, the median listing price per square foot is $932 and the medium selling price is up to $2.1 million. At this time, the sale-to-list price ratio stands at nearly 96%, meaning homes are selling for about 4% under their listing prices. Presently, the market is heavily favoring sellers and is considered to be a solid seller's market, with the median listing days of activity being just 66 days, or slightly over two months from listing to sale.
While all of these figures represent a robust market, particularly for homeowners and sellers, activity will certainly slow as the Federal Reserve continues to incrementally raise interest rates, making mortgages substantially more expensive. This, combined with persistent inflationary pressures, and weakening purchasing power will also contribute to a real estate slowdown. Additionally, buyers will still mostly have to shop mostly among resales as new construction in the area remains anemic. In fact, new construction activity will not return until materials are more readily available and affordable, along with the availability and willingness of laborers to enter the construction job market.
In conclusion, the residential real estate market in Islamorada is hot at this point in time, but will more than likely experience a significant slowdown as interest rates rise, inflation remains, and new construction does not offer buyers other alternatives to resales.