December 21, 2023 – As the allure of moving to Florida continues to captivate many, with attractions like Disney World, the Daytona 500, and even a 200-foot alligator named Swampy, the state’s housing market becomes a focal point of interest. In 2023, Florida witnessed a modest increase in housing prices, and as we approach 2024, the market shows intriguing trends and predictions.
Current State of the Florida Housing Market
In the last quarter of 2023, Florida’s housing market saw some notable changes compared to the previous year:
- Median Sale Price: Increased by 2.0% to $410,000.
- Inventory (Active Listings): Rose by 8.6% to 74,703 listings.
- Closed Sales: Decreased by 5.3%.
- Median Time to Sale: Increased slightly by 1.4% to 71 days.
- Average Mortgage Rate (15-Year Fixed): Jumped by 10% to 7.03%.
These figures, focusing on single-family homes, reveal a market experiencing gradual price increases and a slight uptick in inventory.
Housing Market in Major Florida Cities
Examining Florida’s major cities – Orlando, Tampa, and Jacksonville – provides a more granular view:
- Orlando: Median Listing Price at $447,450.
- Tampa: Median Listing Price at $425,000.
- Jacksonville: Median Listing Price at $412,000.
These cities show a very marginal year-over-year percentage change, indicating a relatively stable market.
Comparison with the National Housing Market
Florida’s median listing price in November 2023 was $462,623, about 9.66% higher than the national median of $420,000. Despite this, Florida remains more affordable than 19 other states.
Predictions for 2024
- Buyers and Sellers in a Holding Pattern: With the recent spike in interest rates, both buyers and sellers are expected to adopt a ‘wait and see’ approach.
- Declining Interest Rates: Predictions suggest a decrease in mortgage interest rates, potentially dropping from 7.5% to 6.3% by the end of 2024.
- Inventory Needs a Boost: Despite a steady increase since 2021, housing inventory growth is not keeping pace with demand. Experts suggest a significant need for new housing units.
Will There Be a Housing Market Crash?
Contrary to some fears, a housing market crash in Florida in 2024 seems unlikely. Prices are expected to continue rising, albeit modestly.
Is It a Good Time to Buy or Sell?
The decision to buy or sell in Florida should be based on individual financial readiness rather than market trends. Prospective buyers should ensure they are debt-free with a substantial emergency fund and a significant down payment. Sellers should consider their financial stability post-move.
Conclusion
As we head into 2024, the Florida housing market presents a mixed bag of steady prices, potential interest rate declines, and a pressing need for more inventory. While the market dynamics are important, individual financial circumstances should be the primary driver for those looking to buy or sell in Florida.
– This article provides a snapshot of the Florida housing market as of late 2023 and offers predictions for 2024. For more detailed and personalized advice, consulting with a real estate expert is recommended.