Central Florida Housing Market on the Brink? What 2024 Taught Us and What’s Coming Next!
In 2024, Central Florida's housing market experienced notable shifts characterized by rising home prices, decreased sales, and evolving inventory levels.
2024 Housing Market Overview
Median Home Prices: The overall median home price reached an all-time high of $385,000 in 2024, marking a 3.9% increase from $370,500 in 2023.
Sales Volume: There was a 7.1% decline in overall sales, totaling 28,321 transactions in 2024 compared to 30,499 in 2023. This decrease spanned various property types:
Single-Family Homes: Sales dropped by 5.3% to 22,216.
Condos: Experienced a 17.9% decline, totaling 3,290 sales.
Townhomes: Saw a 7.0% decrease, with 2,815 sales recorded.
Inventory Levels: The year began with 8,217 homes available (a 4.78-month supply). Inventory peaked in November at 11,604 homes (6.43-month supply), indicating a balanced market for the first time since February 2011. By December, inventory slightly decreased to 10,049 homes (4.67-month supply).
Factors Influencing the 2024 Market
Several key elements contributed to these trends:
Interest Rates: Rising interest rates throughout 2023 led many buyers and sellers to delay transactions, anticipating potential rate drops. In 2024, acceptance of the prevailing rates prompted re-engagement in the market.
Insurance Costs and Natural Disasters: Elevated insurance premiums and concerns over hurricane-related damages made properties in certain areas less attractive, contributing to increased inventory and decreased demand.
Regulatory Changes: New safety regulations, especially affecting older condominium buildings, led to increased costs for owners, influencing market dynamics.
Looking Ahead: 2025 Market Projections
Experts anticipate a more stable housing market in 2025:
Price Trends: Home prices are expected to stabilize, with slower growth rates compared to previous years.
Interest Rates: Mortgage rates are projected to remain elevated, around 6% to 7%, in the short term but may decrease as inflation eases.
Buyer Activity: As buyers adjust to current interest rates and market conditions, increased purchasing activity is anticipated.
Final Thoughts
The Central Florida housing market in 2024 showcased resilience amid various challenges, including rising interest rates, increased insurance costs, and regulatory changes. The attainment of a balanced market indicates a shift towards stability. Looking forward, while price growth may decelerate and interest rates remain relatively high, the market is expected to offer more opportunities for both buyers and sellers as conditions stabilize.
If you enjoy reading news on central Florida real estate, national economics, and financial data , consider following our facebook page "Haripaul Client" and subscribing to our monthly newsletter. We post relevant and useful information weekly that gives buyers, sellers, and homeowners all the information they need to make informative decisions.
If you or anyone you know is looking to buy or sell a property within the near future, please consider using us for your representation. We have a wealth of insight and real world experience, both in real estate and finance. To learn more about how we can better assist you, please click the button below and read more about us on our website.