The Florida housing market continues to evolve, with significant trends and predictions for 2024 highlighted by Dave Ramsey’s Ramsey Solutions. Whether you’re looking to buy or sell a home in the Sunshine State, understanding these market dynamics is crucial for making informed decisions.
Market Overview
According to Ramsey Solutions, housing prices in Florida have experienced modest growth. Comparing the fourth quarters of 2022 and 2023:
- Median Sales Price: Increased from $401,990 to $410,000, marking a 2% rise.
- Active Listings: Grew from 68,813 to 74,703, an 8.6% increase.
- Closed Sales: Decreased from 20,837 to 19,729.
Mortgage Rates
The typical mortgage interest rates have also seen an uptick. The average 15-year fixed-rate mortgage went from 6.36% in 2022 to 7.03% in 2023. This rise in mortgage rates has made potential buyers and sellers more cautious.
Regional Variations
The market conditions vary significantly across different cities in Florida:
- Orlando, Tampa, and Jacksonville: These cities have seen higher median listing prices, with each exceeding $412,000. The home prices in these areas have continued to climb, reflecting local demand and economic conditions.
Inventory Shortages
A major challenge in the Florida housing market is the limited inventory. Ken H. Johnson from Florida Atlantic University notes that Florida needs approximately 200,000 new homes annually to meet demand, but only about 20,000 new homes are being built each year. This shortfall is contributing to higher housing prices.
Buyer and Seller Outlook
Brad O’Connor, the chief economist at Florida Realtors, pointed out that while inventory is slowly increasing, the growth in housing prices has decelerated. However, both buyers and sellers are in a holding pattern, waiting to see how mortgage rates will impact the market in the coming months.
Conclusion
In summary, the Florida housing market in 2024 is characterized by rising home prices, increasing mortgage rates, and a significant inventory shortage. These factors suggest that both buyers and sellers may need to exercise patience as they navigate the evolving market landscape. Understanding these trends can help you make better real estate decisions in Florida this year.
Key Takeaways:
- Modest Price Increase: Home prices have risen by 2% from 2022 to 2023.
- Rising Listings, Falling Sales: Active listings increased by 8.6%, while closed sales dropped.
- Higher Mortgage Rates: The average 15-year fixed-rate mortgage increased to 7.03%.
- Inventory Challenges: Significant shortfall in new home construction.
- Regional Disparities: Higher prices in Orlando, Tampa, and Jacksonville.
Stay informed and strategic to make the most of Florida’s real estate opportunities in 2024.
