Florida Housing Market Insights for 2024: Trends and Predictions

According to Dave Ramsey’s research, housing prices in Florida have experienced an increase, particularly when comparing the fourth quarters of 2022 and 2023. The median sales price of a Florida home rose from $401,990 at the end of 2022 to $410,000 one year later, marking a 2% increase. Over the same period, the number of active listings on the Florida market also grew from 68,813 to 74,703, indicating an 8.6% increase in sellers. However, the number of closed sales declined from 20,837 to 19,729.

Examining mortgage interest rates, Ramsey focused on the average 15-year fixed-rate mortgage, revealing a slight increase from 6.36% in 2022 to 7.03% in 2023. The Florida housing market’s dynamics vary by location, with cities like Orlando, Tampa, and Jacksonville showing median listing prices of $412,000 or higher, surpassing the state’s median sales price.

Ramsey discussed the housing market with Ken H. Johnson from Florida Atlantic University, who emphasized the need for around 200,000 new homes annually in Florida to meet demand, whereas the state currently receives only a fraction of that. The limited inventory has contributed to higher prices, with Brad O’Connor, Chief Economist at Florida Realtors, noting a gradual increase in available inventory that has slowed price growth. However, both buyers and sellers are cautious, awaiting developments in mortgage rates.

While interest rates have risen in recent years, Ramsey suggested a potential decline in 2024, supported by Lawrence Yun, Chief Economist at the National Association of Realtors (NAR). Yun predicts a drop in the average interest rate on a 30-year fixed-rate loan from around 7.5% to 6.3% by the end of the year, potentially influencing more buyers or sellers to enter the market.

Despite concerns about a housing market crash, Ramsey believes it’s unlikely, suggesting that Florida homes may see an increase in value, especially favorable for sellers. NAR’s prediction aligns with this optimism, forecasting a 2.6% increase in home values across the U.S. in 2024, while Freddie Mac anticipates a smaller rise of 0.8%.

With these figures and potential changes looming, individuals contemplating property transactions in 2024 are encouraged to consider their specific circumstances and finances. Ramsey advises buyers to focus on having no debt, maintaining three to six months’ worth of emergency funds, and securing a down payment of at least 5% to 10%. For sellers, careful consideration of moving costs and alignment with short- and long-term financial goals is crucial in making informed decisions.