The interesting thing about life is we don’t know what will happen next. My hope is that we will see a steady and balanced market this year. These predictions are based on the data out there, here’s where I think real estate has been this year, and where I think it’s headed:
Steady Mortgage Rates
This is the questions I’m asked most, “Do you think mortgage interest rates are coming down?” The simple answer is, sadly, no. Or at least, they’re not coming down to the 3-5% rates we saw awhile ago. The Fed made a few small benchmark rate cuts this year that didn’t really change anything, and they are very ho-hum about cuts in 2025. The inflation and national debt battles have given the Fed good reason to slow rates. We’ll continue to see rates between the mid-6’s and mid-7’s.
More Inventory
Our inventory has shot up 70% which has been a good part of the real estate story here, and spring usually brings more homes to the market. It has become a big-time buyer’s market. Homes often stay on the market for 30-60 days before getting a buyer. I am seeing more sellers be willing to drop prices to get the sale – especially if there are multiple similar homes for sale in their neighborhood. Buyers take note!
Steady Home Prices
In Central Florida there been some modest 3-4% equity growth in 2024. The median price here is now $420,000. I think values will continue a steady small upward growth over the year. Having said that, as I said above, I’m seeing sellers willing to accept less.
Political Impacts
Elections are interesting turning points. As of right now, I don’t think the outcome of the election has had much effect on real estate in Florida or the rest of the country (of course, the inauguration has yet to happen). My prediction is a new president won’t change what’s happening in real estate much, at least not right away. Mortgage rates, inventory, demand, incomes, cost-of-ownership, and home prices are all factors working together to make the market what it is at any given moment. If rates dip down into the 5’s again, I think we will see more buyers and sellers in the housing market. If incomes go up and prices go down significantly, we will see more people willing to buy and sell. That’s a lot of if’s when the factors are so huge.
So my predictions are mostly, steady as she goes. Is it still a good idea to buy a house? I would say, of course, yes! Should you wait? I would say no. Prices will continue to go up, although slowly. And certainly, don’t wait for an interest rate drop. It probably isn’t going to happen anytime soon. In the meantime, if you want to buy, do everything in your power to save as much money as you can for a downpayment, get your credit score up, and reduce your debt. If you want to sell, be prepared to wait for a buyer and be flexible about price.
