The current median home sale price of $419,000 is rising slowly at just 2.3% YoY. Moreover, homes have been sitting on the market for 57 days. This indicates that the real estate market in the Sunshine State is now slightly less competitive.
Additionally, only 32,836 homes were sold in June 2024, down from 38,387 in the previous year. This decline suggests sellers are receiving fewer offers, mainly due to the recent NAR settlement. Concerns about selling prices and agent compensation have contributed to this market sluggishness.
The NAR settlement has removed the buyers’ agent compensation from the MLS. This may drive down home prices further. As a result, buyers will have improved affordability along with low mortgage rates.
Here are some tips for you to sustain in Florida’s housing market:
- If You Are a Home Buyer: With an inventory of 198K properties and the potential for further price drops, now is a good time to buy your new home. The low interest rates at 6.48% are also in your favor. Consider negotiating for seller concessions to further benefit from the purchase.
- If You Are a Home Seller: The correction in the home prices is long overdue. In the wake of the NAR settlement, home prices may drop a little more. If you’re a seller, you can still make profits on home sale before prices potentially drop.
So, How Is the Real Estate Market in Florida?
Balanced!
The number of homes for sale increased by 40.1% in June 2024 compared to the previous year. This is the 8th consecutive month the housing market has witnessed such growth. Single-family homes for sale are up by 15.2%, and condos by 13.8%.
- Median Days on Market: The median days on market for homes for sale is 57 days, up by 16 days YoY. This trend suggests a cooling demand in the Florida real estate market.
- Housing Inventory and Supply: As a buyer, you have more options now as the housing inventory is up by 40.1%. There are 198K homes for sale in Florida, with an average supply of 5 months.
- Average Home Prices: The median home price in Florida is $419,200. But, it is expected to decrease due to a rise in inventory in the latter half of 2024. The sale-to-list price ratio is 96.90%, dropping by 0.53 pt YoY.
- Home Sales: As per June 2024 data, home sales decreased by 14% YoY! Only 32,836 homes were sold, compared to 38,399 last year.
- Average Rent Prices: Rental costs vary statewide. An average tenant in Miami pays $2,538, while the one living in Tampa pays $1,920. You should check the local rates in your region.
Why Is Florida a Buyer’s Market Now?
Buyers have more options to explore. Additional housing supply can balance the Florida real estate market and stabilize home prices. Let’s look at some more facts:
- More Days on the Market: Homes are spending more days on the market. This is visible in metro cities like Miami, Jacksonville, and Sarasota, where the average days on market is between 63 and 83 days.
- Low Housing Demand: The demand in Orlando is low, with only 418 homes sold in June, down from 452 last year. Similarly, only 96 homes were sold in Sarasota, a significant 37% decrease from the previous year.
- More Homes Have Price Drops: In June, 30.9% of homes experienced price drops, compared to 26% last year. This trend indicates a gradual shift toward a buyer’s market.
- Low Mortgage Rates: Mortgage rates remain near historic lows, ranging between 6.50%-6.84%. So, this is a great time to lock in a low rate and get pre-approved for a mortgage now.
Your Path to Homeownership Starts Here🏡
Select Your Loan Type
-
New Home Purchase
-
Mortgage Refinance
-
Cash-out Refinance
Florida Real Estate Market Predictions
Here are the predictions for Florida’s housing market in the remaining months of 2024 and 2025:
- Number of Home Buyers Will Increase: As inventory grows and homes stay on the market, more home shoppers are expected to re-enter the market.
- Interest Rates are Expected to Drop: Mortgage rates hit 6.34% in July 2024. NAR predicts the average interest rate will drop to 6.3% by year-end. This will encourage more buyers to apply for loans.
- New Home Constructions Will Shoot Up: 33.4% of single-family homes for sale in Q1 were newly built. This rise in home construction will continue due to increased demand from remote workers and favorable mortgage rates.
- Home Prices Will Drop: After a period of sluggish growth, home prices are expected to begin a gradual decline.
- iBuyers Will Continue to Make Lowball Offers: iBuyers like Opendoor and Offerpad, which once offered 104.1% of market value in 2021, now offer around 70%. Such lowball offers to sellers will increase opportunities for individual buyers.
Bonus Predictions: Buyer Broker Commissions Will Be Zero!
In a shocking turn of events, the NAR settlement has completely eliminated buyer agent fees from the MLS. Let’s understand its impact:
- Buyer Agents Will Be Affected: With buyers now responsible for directly paying their agents, many may choose to find their homes on their own. This may very soon render buyer agents obsolete.
- Seller Concession Will Increase: Without the obligation to pay buyer agent commissions, sellers might see increased requests for seller concessions and offline transactions. Additionally, builders are offering significant concessions to attract buyers, further influencing the market dynamics.
- Builders Will Compete More: Home builders are persuading buyers to buy new construction homes with mortgage buydowns worth $30K!
- Sellers May Offer Fees for Services: Sellers may offer at least 1%-2% fees to the buyer agents in order to sell their homes quickly. Increasing competition from builders may also cause sellers to pay extra fees to buyer agents.
Curious what the NAR lawsuit is about?
Check out our video to find out why NAR chose to settle and eliminate the buyer-broker compensation rule.
Is the Housing Market in Florida Going to Crash?
A housing market crash in Florida is unlikely. Florida home prices have been up by about 80% over the past 5 years. Analysts predict this positive trend will continue over the next 5 years.
Florida benefits from a net income inflow of over $36.05 billion annually, and the state’s zero-income tax rate adds to its appeal. The job market remains robust, with an unemployment rate of just 3.3%. Additionally, the average cost of living in Florida is $50,689, significantly lower than the national average of $61,334.
This affordability, combined with strong economic fundamentals, makes a housing market crash in Florida unlikely.
2024: Is It a Buyers’ or Sellers’ Market Now?
The housing market is expected to lean more in favor of the buyers in the latter half of 2024. Home prices are rising slowly, and the number of homes for sale has increased by 39.8% YoY. Buyers now have more choices.
With mortgage rates around 6.34%, buyers also have more purchasing power. Consequently, more homeowners are likely to list their homes on Multiple Listing Service Florida. The 3.4% increase in new active home listings in Florida has brought back home shoppers.
So, whether you are looking for a condo in Miami or a single-family primary home in Tampa, you will find your dream home in the coming months.
Find Your New Home With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest home listing sites in the US. Find condos, townhouses, co-ops, and other homes for sale on Houzeo.
» Need More Clarity? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Disclaimer: This article is for informational purposes only. It does not constitute an offer, solicitation of an offer, or any advice or recommendation. Houzeo doesn’t provide any legal or financial advice. The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Houzeo Corp., its affiliates, or its employees. However, the author does not make any representation or warranty, express or implied, as to the information’s accuracy or completeness, nor does the author recommend that the attached information serve as the basis of any investment decision.
Frequently Asked Questions About the FL Real Estate Market
When will the housing market crash in Florida?
Not for the next few years. Florida's housing market will not crash in 2024. Despite low housing demand and modest home prices, Florida's market is afloat.
What are the real estate housing market 2024 predictions for Florida?
2024 is a balanced market with 5-6 months of supply. Here's our forecast for Florida's housing market in 2024: (1) Home buyers have returned to the market. (2) Housing inventory will increase. (3) Property prices in Florida will increase marginally.
Are home prices dropping in Florida?
Not yet! Currently the property prices in Florida are increasing but at a slow pace of 2.3% YOY. However, you can still find the cheapest places to live in Florida. You can find the value of your favorite homes on Houzeo's home value estimator.
Is it a good time to buy a house in Florida?
Yes! Currently, the homes for sale are at around 198K which is up by 39.8% YoY. Low home prices and low mortgage payments have made buying a home affordable. More buyers will return in the second half of 2024, so we'd recommend you buy a house now.
