When the housing market in a highly desired location begins to cool, there are signs. That’s happening in the hot South Florida market. There are homes to sell and plentiful buyers, but there are other forces at work.


During the height of the pandemic, people seeking a home were severely curtailed in that pursuit due to lockdowns. Individuals didn’t give up the goal of buying a house, they simply delayed it. That desire burst forth in full bloom when restrictions began to relax.

More people also began to see the advantage of owning a home due to lockdowns. Many renters were left homeless with nowhere to turn. Owning a home began to represent safety and security. Now that life has returned to a sense of normalcy, some aren’t feeling the same sense of urgency.


Those that have the cash are offering owners over the asking price to get the house they want. Adding to the problem are investment firms that are buying up properties and essentially flipping them for even more than the original asking price, creating further pricing inequities.

Even though there’s a wealth of high-end homes for sale, the demand for traditional middle-class homes isn’t being met. Individuals that have been pre-approved for financing aren’t able to find homes in their price range. Down payment requirements also continue to rise.

Interest Rates

Many individuals waited too long to take advantage of low interest rates. The Federal Reserve is slowing ratcheting up interest rates in an effort to control inflation, which means higher mortgage payments.


Insuring a home is critical for protecting the asset. However, a number of insurance companies are dropping clients and refusing to insure homes in certain areas. Other insurers are going out of business or leaving – they say the risk factors in the state are too costly to cover – leaving new home owners with fewer insurance choices and higher premiums.

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