According to some economists, 2023 will be a disastrous year for the United States due to the level of inflation we are currently undergoing and the uncertainty of the future of the country with this current federal administration. Personally, I also feel like the outlook of the country is not heading in the right direction. In my state, although the state is doing well, there is something brewing in the housing market.
A Floridian Housing Crash?
In Florida, the cost of homes and rent has skyrocketed due to a large influx of American citizens flocking to the state due to the carelessness of New York, California, and other major Democrat states during the China Virus pandemic and lockdowns. The demand has risen exponentially, along with the demand for metals since the start of the pandemic which has led to a bloated housing market in the state of Florida with construction companies unable to keep up with demand. As the demand begins to fizzle, the construction companies will have to finish their projects which will mean a massive turnaround in value.
The Floridian median value for homes peaked in May 2022 at around $ 410,000 USD. In January 2020, the median sale price in Florida was $ 260,000 USD. In the last reports we've seen in October 2022, the value has dropped down to approximately $392,000 USD, a ~4.4% drop in just a month. With the expected downturn of the general economy to happen in 2023, it's very likely we will be witnessing a larger housing market crash than what we saw in the 2000s.
The states of Colorado and Texas are both seeing extremely similar situations. The next crash will be disastrous to the United States economy.
Houses are so overvalued (in Florida anyway) that a crash would really just amount to a correction. I keep saying that when the next crash comes, I'm going to buy a new house and then hold on to my current house until prices go insane again.