With the current high interest rates and low inventory of new homes, you may wonder if it’s a good time to become a real estate agent in Florida. Let’s look at the current Florida housing market trends and see what industry insiders predict for the FL real estate market in 2024.
Related: Orlando’s Real Estate Market Outlook Sizzles Into Summer
Key Takeaways
- Single and multifamily home production is well below demand in Florida. However, there has been an explosion of vacation residences.
- Housing pricing remains high with increased demand and a lower supply of homes.
- Florida is expected to experience population growth within the next five years.
- As interest rates continue to drop, expect to see more buyers enter the market.
Current Florida Housing Market Trends
What’s the current data regarding Florida real estate? Here are a few metrics that insiders are talking about at the beginning of 2024.
Housing inventory
The number of new listings decreased by 10.2% year over year, and a 3.6-month supply of inventory indicates a seller’s market. Florida’s housing inventory continues to be a critical factor in Florida real estate trends.
New single and multifamily home production is well below the demand, especially in South Florida. While plenty of multifamily projects are in the pipeline, construction is slowing due to higher financing costs.
In contrast, there has been an explosion in condo-hotel projects that cater to buyers seeking a Florida vacation residence – especially along the east coast of Florida.
Pricing
The median sale price of a Florida home in 2023 was $410,000, a 1.9% increase from the previous year.
Home prices will remain high in Florida due to low supply and high demand. With high prices and insurance premiums (and higher mortgage rates), first-time buyers may need to rent a bit longer – and will need leasing agents to help find affordable housing options.
It’s worth noting that luxury real estate is typically not affected by interest rate increases because this segment often uses cash for purchases.
Top emerging regions and cities in Florida
Last year, Polk was the fastest-growing county in Florida and seventh-fastest in the nation. Other growing counties include Orange, Hillsborough, Lee, and Palm Beach. Orlando and Southwest Florida may see 20% growth over the next decade.
The top emerging regions of Florida include Orlando and Tampa “exurbs” and the area east of I-75 in Southwest Florida.
Florida is expected to experience high population growth over the next five years.
Challenges for Buyers and Sellers in Booming Market
It will continue to be a seller’s market in Florida in 2024. Low inventory and increasing population will keep prices high. And, of course, the mortgage rates will continue to be a critical factor – especially in the move-up market.
Opportunities for Investors
Regardless of the challenges buyers and sellers face, there continue to be opportunities for investors. Investors are looking at residential real estate in Florida to capitalize on the high demand for rentals in the state.
Advice Based on Future Predictions
What take-home messages can we learn from these current Florida housing market trends?
1. More people are moving to Florida, and investors are moving as quickly as possible to meet the increased housing demand. In the meantime, brokerages should consider adding property management services to their portfolios.
2. More buyers will enter the market this year with plans to refinance when interest rates finally drop.
3. The luxury market will remain unaffected by the higher interest rates.
4. Getting your sales associate license for Florida is a good career move, as the market will take off as interest rates continue to drop.
5. If you are already licensed, it might be time to become a broker to diversify your business streams.
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Source:
“Florida Housing Market Predictions 2024.” Ramsey Solutions. Accessed February 9, 2024. https://www.ramseysolutions.com/real-estate/florida-housing-market.