Florida Real Estate Market 2024 and Beyond

Florida Housing Market Forecast 2024

The Florida housing sector is self-cooling in 2024, with the median home sale price having averaged $419,000, just 2.3% more than a year ago. Houses are staying on the market for 57 days on average this year, signaling that the state is taking a turn into a less competitive market. June bellwether saw 32,836 homes sold, down from 38,387 the previous year.

This is indicative of fewer offers going out to sellers, partly because of the recent NAR settlement which effectively removed buyer’s agent compensation from the MLS. This could continue to put downward pressure on prices and create a more affordable environment for buyers.

If You Are a Home Buyer

With 198K properties in inventory and the possibility of the price further going down, it is time to buy. The interest rates are also at their low at 6.48% currently. Consider negotiating for seller concessions to maximize your benefits.

If You Are a Home Seller

Listing your home before the price goes down further would be a good idea in the present market trend. The overdue market correction still leaves room for profit for any significant decline.

Overview of Florida Real Estate Market

Single-family homes for sale increased in June 2024 over a year ago by 40.1%, representing the 8th consecutive month in which sales increased. Median days on the market have increased to 57, up 16 days from the previous year. Home inventory is abundant, coming in at 5 months supply, and a total of 198K homes for sale.

Predictions for the Rest of 2024 and 2025

More Buyers: The increase in inventory should lead more buyers to the market.
Interest Rates: Falling further and possibly attracting more buyers.
New Home Constructions: Will increase due to remote work and mortgage rates.
Prices: To go down gradually.
Impact of the NAR Settlement: The buying agents would be removed, and there would possibly be incentives from the seller’s side to allure buying agents and other variant methods of selling.

Will Florida Housing Market Crash?

With good economic fundamentals like a healthy job market, inflow of net income, and favorable taxation policies, the chances of a crash are slim. Instead, an 80% increase in home prices over the last five years is more likely to stabilize rather than crash.

2024: Buyers’ or Sellers’ Market ?

In addition, an average nominal mortgage rate of 6.34% will provide buyers with more purchasing power, which could help boost home listings and buyer activity starting in the second half of 2024.

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Florida Housing Market Predictions 2024: Continued Insights

There are some factors in the predictions related to the Florida housing market 2024 that every buyer and seller should go through to get the hang of it.

• Influence of Local Market
  Florida’s market is not the same everywhere but instead represents regional variations. For example, metro Miami and Jacksonville have an average of 63 days on the market, while metrotowns around Sarasota are approximately 83 days. The slowdown in these formerly high-demand areas means the market conditions this year are pushing toward becoming a buyer’s market.
• Increased Inventory Implications
  The 40.1% year-over-year new housing inventory increase is a critical reason for that. Certainly, it makes evident sense because buyers now have more houses to choose from, and that may further reduce prices. On the other hand, for sellers, it means a bit more competition, and this implies a need to price homes realistically and possibly offer other incentives, such as closing cost assistance.
• Mortgage Rates and Affordability
  Where the mortgage rates have held steady between 6.50% and 6.84%, this proves to be a two edged sword. This is seen as fair, as home ownership is made more attainable, yet it will still draw more buyers into the market and continue to balance demand against rising inventory. Because mortgage rates are expected to stay low, buyers are urged to lock up rates now before any increases occur.
• New Construction Trends
  New single-family home building will continue well into 2024, fueled by a surging demand by remote workers for larger homes that can accommodate office spaces. Today, builders are offering huge concessions, including mortgage buydowns, to lure buyers. This itself can change the dynamics of the market.
• Long-Term Stability of the Market
  A likely stabilization for the future is the outlook for Florida’s housing market. Though possible slight declines in home prices may appear, the overall market is expected to stay strong, buoyed by the strong financial beginnings in Florida: a low unemployment rate and favorable tax policies.

Operating under the NAR Settlement

This has now changed because both the buyers and the sellers in real estate would determine whom the commissions were paid to. Consequently, if the NAR settlement eliminated commissions paid to the buyer agents through the MLS, the dynamics of real estate have also changed. It may now come to a point where buyers will not consider a seller’s listing unless the seller offers some compensation to the buyer agents. Or the direct dealing between buyers and sellers may start to hold and once again justify the dynamics of how properties are marketed and sold.

• Lock in Low Mortgage Rates: The low mortgage rates ensure affordability at its best.
  Consider New Constructions: New home constructions are offering attractive incentives from builders.
  For Sellers
• Competitive Pricing: More homes coming onto the market will mean buyers are going to look for the best options.
• Offer Concessions: Try to offer seller concessions that you will pay all or part of the closing costs to attract the buyer to your listing.
• Be Outfront to Market Changes: Be at the forefront of the market and, in case of changes in any of the assumptions taken into consideration within this report, revise strategies accordingly. Put into consideration any impacts of the NAR settlement of the lawsuit.

The Florida housing market in 2024 will be balanced, with more inventory and softening demand. That means buyers will be better poised to negotiate favorable deals and sellers will have to sail through a different dynamic of the market. Being a step ahead in changing strategies relative to market trends can be key to beating the Florida real estate market in 2024, whether buying or selling in these changing times.

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