Watson Realty Corp. gathered data from real estate leaders to discuss key changes in the industry for the fall/winter 2021 season. Watson leadership and real estate experts, Regional Vice President of Watson North Central Region and Northeast Florida Association of Realtors President Mark Rosener and Regional Vice President of Watson Central Region Jeffrey Fagan share their predictions for the region.
Will the market crash in Florida or Watson footprint regions?
“Although there has been significant upward movement in terms of median and average price, we do not see a crash [happening],” said Rosener. “Price increases have been driven by exceptionally limited inventory, [so] there is no indication that will change substantially.”
“I agree with Mark’s assessment,” said Fagan. “While the market in general has stabilized marginally, there is now the beginning of a differentiation within the market. There will not be a crash, and in my opinion, there will be continued slow moderation.”
Predictions for the rest of the season include fewer home sales, overall leading to a much-needed increase in home inventory in many areas of the country.
What does this mean for Florida and South Georgia customers? Will we see an increase in inventory or will it remain low?
“Inventory is beginning to open up slightly in most of our markets,” said Rosener. “We believe there will be incremental increases in terms of active residential homes for sale over the next six to 12 months that will help to stabilize the market, but most likely, inventory will remain low compared to historic levels.”
“Slow growth in inventory as the market tries to find its equilibrium, while new construction starts have drastically trailed demand for over a decade,” added Fagan. “And with [current] supply chain issues, this segment will take at least 10 years or more to even out in Florida.”
Is this millennial-based trend happening in Watson’s regional markets as well?
“Yes, it is a trend that we are experiencing and it likely will expand, particularly if the number one hinderance of property acquisition – student loan debt – is reduced through government action … stay tuned,” said Fagan. “We also are seeing a wonderful advancement of female head-of-household property acquisition in the current environment.”
“There is no question that household formations from the millennial generation are fueling a part of the current demand for residential real estate,” answered Rosener. “We see that happening across the board in most markets that Watson Realty Corp. does business. This is a national trend that is definitely happening in our markets, and we anticipate it will continue over the next one to five years.”
