“Knowledge is power” it is a saying that is proven correct time and time again. No one knows the local real estate market like a Realtor, and I am here to help you navigate the process.
1. Sellers Will Enter the Market in 2024: Sellers who chose to wait to sell in 2023 will come on the market, especially those who cannot avoid new jobs or want to move to a cheap place.
2. Mortgage Interest Rates Will Stabilize by the 2nd Half of 2024: Mortgage rates hit 7.79% in October 2023, the highest level in 23 years. However, the rate dropped to 7.35% in November due to the lower labor market and slowing economy. Even the annual inflation rate went from 3.7% to 3.2%. I believe the rates will remain above 6%, but they will stabilize in the second half.
3. Home Buyers Will Increase: The historically high interest rates averted buyers in 2023. But mortgage demand rose after the interest rates lowered to 7.35% in November. The reducing inflation and stabilizing rates will bring back house hunters. Are we going back to 2021-2022? I do not believe so.
4. Home Prices Will Rise: Home prices rose steadily in the top metros across FL peaking at $402K in September 2023. Experts predict home prices will continue to rise until the low supply-high demand dynamic changes. South West Florida is one of the strongest real estate markets with continue growth and it is part of the top areas of growth in 2022-2023.
5. New Home Constructions Sales Will Increase: 12.3% of homes purchased in September 2023 were new homes, the highest since 2022. Home builders offered $30,000-$90,000 worth of concessions to attract buyers in 2023. I believe builders and sellers will compete for buyers in 2024. Venice and especially Wellen Park has an abundance of new constructions developments that might be attractive to buyers.
6. Online Brokerages and Companies Will Continue to Make Lowball Offers. These companies offered 104.1% of market value in 2021. They offered 86% in 2022 and around 70% in 2023. Opendoor, Offerpad, etc have lost billions of dollars in 2023 struggling to survive and most likely will continue the trend of low ball offers. Will they survive? I am not sure, sellers and buyers and not impressed with their performance in 2023.
Extra Prediction: Buyer Broker Commissions Will Be Negotiable! This will become a nationwide requirement overtime, some states had already implemented the Broker Commission as a separate commission from the Sellers’.
My previous Blog talked about the NAR and the active lawsuit against NAR. If you are interested to read more about it, please read that one as well.