Exploring the Florida Housing Market Trends and Predictions for 2024

Florida Housing Market Predictions for 2024: What Buyers and Sellers Need to Know

In a recent article by Dave Ramsey’s website, Ramsey Solutions, key findings on the housing market in Florida were reported, along with predictions for the remainder of this year. Whether you’re looking to buy or sell a home in the Sunshine State, it’s crucial to be aware of these changes to make informed decisions.

According to Ramsey Solutions, housing prices in Florida have seen an increase, especially when comparing the fourth quarters of 2022 and 2023. The median sales price of a Florida home rose from $401,990 in 2022 to $410,000 in 2023, marking a 2% increase. Additionally, the number of active listings on the market increased by 8.6%, indicating more sellers are entering the market. However, the number of closed sales decreased during the same period.

The typical mortgage interest rates also saw a slight increase, with the average 15-year fixed-rate mortgage rising from 6.36% to 7.03% from 2022 to 2023. The Florida housing market varies by location, with cities like Orlando, Tampa, and Jacksonville seeing median listing prices above the state’s median sales price.

One significant challenge in the Florida housing market is the lack of inventory. According to Ken H. Johnson from Florida Atlantic University, the state needs around 200,000 new homes annually to meet demand, but only receives a fraction of that. This limited inventory has contributed to higher prices in the market.

Both buyers and sellers in Florida may experience delays due to uncertainty surrounding mortgage rates. While available inventory is slowly increasing, price growth has slowed. The wait to see how interest rates will evolve has put both parties in a holding pattern.

However, there may be some relief on the horizon as interest rates are predicted to drop in 2024. Lawrence Yun, the chief economist at the National Association of Realtors, suggests that rates have likely peaked and could start declining soon. This potential decrease could encourage more buyers and sellers to enter the market.

Despite concerns about a housing market crash, Ramsey Solutions believes it is unlikely in Florida. In fact, home values are expected to increase, which is positive news for sellers. National forecasts predict a rise in home values across the U.S., with Florida likely following suit.

As 2024 unfolds, many are questioning whether it’s the right time to buy or sell a home in Florida. While market trends are essential to consider, Ramsey Solutions advises making decisions based on individual circumstances and finances. For buyers, this means being debt-free, having an emergency fund, and a down payment of at least 5% to 10%. Sellers should consider moving costs and ensure their decision aligns with their financial goals.

With potential changes on the horizon, staying informed and making decisions based on personal financial situations will be key for buyers and sellers navigating the Florida housing market in 2024.