The beginning of 2024 marked a period of growth for Florida’s real estate market. According to the latest data from Florida Realtors®, January saw an increase in median prices, as well as the number of new listings and inventory compared to the previous year.
Despite these positive signs, mortgage interest rates above 6% continued to affect the purchasing power of potential homebuyers. This phenomenon also contributed to a lock-in effect among potential sellers who had purchased their homes years ago with lower interest rates.
Gia Arvin, president of Florida Realtors® 2024, commented that “we see encouraging signs that inventory for sale is starting to increase in many local markets across the state, which should encourage buyers who may have been waiting on the sidelines.”
Closed sales of single-family homes statewide increased slightly in January 2024 compared to the previous year. However, sales of existing condos and townhouses showed a slight year-over-year decrease.
The statewide median sales price for existing single-family homes and condo-townhouse units experienced an increase in January 2024 compared to the previous year.
Dr. Brad O’Connor, Chief Economist for Florida Realtors, noted that although sales and prices remained relatively stable compared to the previous year, there was a significant increase in the number of new listings in January 2024. This increase was largely due to the low numbers of new listings at the end of 2022 and the beginning of 2023, primarily due to rapidly rising mortgage rates at that time.
With new listings returning to normal levels in recent months, Florida’s real estate market has added some inventory, pulling it out of multi-year lows. This provides more options for potential homebuyers and should help keep further price growth in check for the time being.
In summary, Florida’s housing market in January 2024 showed mixed signals, with an increase in prices and new listings, but with some concerns about mortgage interest rates and their impact on buyers’ purchasing power. However, the increase in inventory is a positive sign for those looking to purchase a home in the Sunshine State.
For more information, visit www.floridarealtors.org.
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