Florida's housing market has seen a rocky landscape in recent years, with home prices skyrocketing amid rising mortgage rates and inflation nationwide.
The median home sale price in Florida rose 2.8% year-over-year to $402,500 in September from last year's $391,400. Interest rates are also at a record high of 8.5%, with inventories so low that at least 14.9% of homes were sold above their listing price.
The factors outlined above have some wondering whether Florida's housing market will see a crash in the next five years. While it is impossible to say for sure, some experts have released predictions on what the state's housing market could look like next year.
Inventory Will Increase in 2024
Sellers who chose not to put up their homes in 2023 are likely to come back next year, especially those who are looking to move to a cheaper place. Meredith Whitney, the analyst who predicted the 2008 housing market crash, said baby boomers will add up to 30 million housing units to the market in 2024.
Mortgage Rates Will Stabilize
Mortgage rates have been skyrocketing over the past months, hitting 7.79% in October-the highest level recorded in 23 years. However, mortgage rates have been dropping steadily since then, falling to 7.44% in November and 6.71% this week.
Experts believe that while mortgage rates will remain above 6%, they will stabilize by the second half of 2023.
Home Sales Will Increase
New home sales in the country dipped to an annual rate of 679,000 in October, far below the 725,000 new homes that analysts expected to be sold. October's home sales were also significantly lower than September's, where 719,000 units were sold.
In October, home sales fell the most in the West, dropping 23.3%. It also fell in the Midwest by 16.4%.
For 2024, experts predict home buyers will return to the market as mortgage rates stabilize and interest rates ease up.
In addition to home sales, new construction home sales are also expected to increase in 2024. In September of this year, 12.3% of all homes purchased were new houses-the highest since 2022.
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