2024 real estate

2024 Real Estate Forecast

NAR economist Yun predicts home sales will begin to rise next year – by 13.5% compared to 2023, and the median home price will reach $389,500 – an increase of 0.9% from this year. “Metro markets in southern states will likely outperform others due to faster job increases, while markets in the Midwest will experience gains from being in the most affordable region.”

Yun expects rent prices to calm down further in 2024, which will hold down the consumer price index. He predicts foreclosure rates will stay at historically low levels in 2024, comprising less than 1% of all mortgages.

Yun forecasts the U.S. GDP will grow by 1.5%, avoiding a recession, with net new job additions slowing to 1.7 million in 2024 compared to 2.7 million in 2023, and 4.8 million in 2022. After eclipsing 8% in late 2023, he expects the 30-year fixed mortgage rate to average 6.3% and for the Fed to cut rates four times – calming inflationary conditions – in response to slower economic activity.

Yun also foresees 1.48 million housing starts in 2024, including 1.04 million single-family and 440,000 multifamily.

Florida is home to over 22+ million people—a number that is growing every day. In fact, Florida is the fastest-growing state in the country, adding an average of 1,000 people per day. These new residents are congregated in just a handful of counties. According to an analysis by the Tampa Bay Times, a third of Florida’s new residents wound up in just five counties: Orange, Hillsborough, Lee, Polk, and Palm Beach. These five counties are all located in the state’s southeastern region, known for its warm weather and beaches.

Florida’s growth is largely fueled by migration. Over the last two years, 616,000 new residents have come to Florida from other parts of the country, and 175,000 from other countries. In fact, without migration, Florida would not have grown at all. Its 567,881 deaths exceeded its 478,834 births. And according to projections, by 2030 Florida will have more than 25 million residents.

Florida’s statistics will be greatly influenced by available inventory for sale. The South Florida real estate market still has a significant shortfall or inventory relative the the migration to the area and demand for housing. Southeast Florida’s housing market is poised for a rebound in sales and sustained price appreciation in 2024.

Filed under: 2024 real estate, Blog, Boca Raton real estate, Exclusive Buyer Agency, Florida Real Estate, Home Buyer Advice, Home Buyers, Homebuyer Advice, new home construction, Real Estate, Real Estate Closings, Real Estate Investment, real estate news, Real estate trends, South Florida Real Estate by Kim Bregman
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Should You Buy A House Now Or Wait Until 2024?

Many prospective homebuyers have been left wondering when the time will be right for them to enter the housing market. The average 30-year fixed mortgage rate hit 8% this week, the highest level since 2000 but a very moderate rate to the 16.5% I paid for my first home in 1980.

Daryl Fairweather, Redfin’s chief economist, said waiting for rates to fall before entering the housing market could be a mistake. “The second that happens, buyers will rush back into the market, and we will see a return of bidding wars,” she said.

For homebuyers who are financially prepared to buy a home, locking in a high interest rate now — and refinancing at a lower rate down the road — could be a wise move, Lawrence Yun, stated chief economist at the National Association of Realtors.

Over the next 12 to 18 months, Yun expects mortgage rates to fall from the near-8% they’re at now to below 7%, perhaps even close to 6%, he said. Remember, the real estate adage of ‘Marry the house and date the rate.’ To put it another way, you can always refinance later. I always advise my buyers to plan on staying in the home for five or more years if you plan on owning a home. If your short term situation involves moving, then perhaps it is best to rent for the time being.

Many factors will change rates in the future and the housing market is directly influenced by mortgage rates. Many of these factors are unknown at this time. Inflation, world unrest and economic conditions, GDP, and more.

The volume of existing home sales was down more than 15 percent from August 2022 to August of this year, according to the National Association of Realtors. However in South Florida though the volume of sales where down homes prices have continued to increase month to month due to a lack of inventory with both resale and new construction.

Cash Buyers should get into the market sooner than later since there are no forecasts that predict that home prices will be lower in South Florida in 2024, just the opposite.

No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately. It also means avoiding the potential for additional mortgage rate increases later.

The decision to buy a house in 2023 or wait till 2024 is multifaceted, depending on market conditions, economic forecasts, personal finances, and lifestyle factors. While it’s essential to consider all these elements, remember that a home is not just an investment—it’s a place to live, grow, and create memories. Whether you choose to buy now or wait, ensure it aligns with both your financial goals and personal needs.

Filed under: 2024 real estate, Blog, Boca Raton real estate, Exclusive Buyer Agency, Exclusive Buyer Agent, First Time Homebuyers, Florida Real Estate, Home Buyer Advice, Home Buyers, Home Financing, Homebuyer Advice, Mortgage Information, Real Estate, Real Estate Investment, real estate news, Real estate trends, South Florida Real Estate by Kim Bregman
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