In the realm of real estate, the desire for mortgage rates to return to the 3% range and bidding wars for new listings may remain unfulfilled. However, experts project that in 2024, the Florida housing market is poised for strength, offering ample opportunities for real estate professionals.
Adam Grenville, a sales associate with RE/MAX Premier Group, emphasizes the importance of fostering relationships, and professionalism and providing excellent service to all involved in real estate transactions. Real estate coach Tom Ferry also advises agents to focus on taking action in today's market reality.
Florida Housing Market Predictions 2024
Looking ahead to 2024, experts anticipate a strengthening Florida housing market driven by population and business growth. Dr. Brad O’Connor, chief economist at Florida Realtors®, notes a return to a pre-pandemic sales pattern with increasing inventory that has slowed price growth. Buyers and sellers are closely watching mortgage rates.
Diana Galavis, broker-associate at Watson Realty, highlights that it will still be a seller's market, even as inventory levels rise. To navigate this market, knowing the statistics and trends in your area is crucial for managing price point expectations.
Florida continues to experience in-migration, driving the demand for homes and condominiums. The state is an attractive location for remote workers, thanks to its affordability and larger housing options compared to the Northeast and West Coast.
Recent population growth has been concentrated in large metro areas, particularly Orange, Hillsborough, Lee, Polk, and Palm Beach counties. This migration is contributing to job formation and strengthening both residential and commercial sectors.
Florida is also witnessing a steady increase in household formation, especially among young adults. This is an excellent time to engage with Gen Z individuals about their housing needs.
While Florida remains a top market for international buyers, this sector is recovering more slowly than the domestic market. Factors like the strong dollar and geopolitical uncertainties are causing some international buyers to delay their purchases.
On the supply side, new home production is struggling to keep up with demand. Partnering with builders is one option to expand inventory options for buyers. Lisa Hill, a broker-associate, suggests that buyers should consider new construction due to low inventory.
Residential developments are expanding to outlying areas due to the growth in hybrid work. Grenville emphasizes the importance of exploring new communities, as new-construction properties are a viable option for buyers.
Multifamily and hospitality sectors are also experiencing strong development activity, offering opportunities for real estate professionals.
Pricing and Rates
Home prices and mortgage rates will be key concerns for buyers and sellers in 2024. Pricing is unlikely to go down due to low active listings and strong demographic demand. Mortgage rates also impact institutional buyers and first-time buyers.
Higher rates have a negative impact on the move-up market, leaving a void in this segment. The luxury segment is less affected by rate changes, with many buyers making all-cash purchases.
Real Estate Professional's Role
In an uncertain mortgage environment, the role of knowledgeable real estate professionals becomes crucial. They can help buyers secure the lowest price and assist sellers in maximizing their sale proceeds. Going back to basics, such as open houses and door-knocking, can be effective strategies for generating business in 2024.