After last week's run on Silicon Valley Bank, two more banks are now failing too. A big reason for this is the back-to-back interest rate hikes over such a short time period that didn't give the banks enough time to adjust. Although they could still go through with another .25 increase, there is a chance that the Fed may pause the rate increases. Without rising interest rates, we could see home prices begin to rise again.
In South Florida, median home prices already increased in January after decreasing 5 out of the last 6 months of 2022. The single family home median sale price for January 2023 is $555,000 and $315,000 for condos/townhomes.
The next Fed meeting is March 21-22 where the decision will be made whether or not to raise rates.
Sign up here to receive email updates on this and other news in South Florida Real Estate...