Are you wondering what to expect in Florida real estate in 2024? I’ve come up with the trends I’m seeing, and what to be on the lookout for in the new year. These are just forecasts, there is no way to know for sure.
It appears the Fed isn’t going to hike rates again in the near future because inflation seems to be under control (currently 3.2%). Mortgage rates were up to 7.79% in October, but have since settled back to around 7.35%. I’m hoping, along with many experts, that we’ll be somewhere in the 6% range by mid-2024.
Hopefully, more sellers will enter the market again because of lower interest rates. The story I’ve heard all year is, “Why would I sell now and buy with a 7% mortgage when I can stay in this home with a 3% mortgage?” It’s a good question. Lower rates may entice sellers to get back in the game, list their home, and purchase a new home. Of course, lower rates will motivate a lot of other buyers as well. I think we can expect inventory in Central Florida to remain tight in 2024. And along with Florida residents purchasing, we can expect more folks to move here as well. In 2023 Florida had 10 of the top 20 fastest-growing cities in the country. Florida is a state with a lot of new construction, so that may help some.
Demand, available inventory, and prices go hand-in-hand. The high Central Florida demand will at the very least keep prices at what they are (the median price for a home in Central Florida rose 2.85% last year from $391,000 to $402,000). Most likely, prices will continue to go up. The good news is we aren’t seeing the astronomical price increases we were seeing a few years ago. But that can happen again, especially if the interest rates become favorable.
The Economy and The Rest of the World Out There
The news can be pretty scary lately. And because of our digital connection, what happens out there, affects us here on a daily basis. We’re dealing with serious global conflicts, economic uncertainty, the rise of AI, and a national election on the horizon. In 2024, 70 countries will have national elections which will affect half of the planet’s population. Those staggering numbers will have very real global impacts.
Despite it all, some economists are seeing good things for the economy in 2024, including the GDP growing by 2.5%. And consumer spending is expected to remain strong as well as employment. The probability of a recession is lower than anticipated.
So what does all this mean for Central Florida real estate? Hopefully, the good news we all want: interest rates will come down some, prices with stabilize, and home homes will be available to purchase. I look forward to serving you with your Florida real estate in 2024! Happy New Year.