Miami Residential Market Forecast for 2024
Over the past few years, Miami’s real estate market has been somewhat unique when compared to the average trends across the US. 2023 held some surprises that we didn’t see coming at the end of 2022. Everything else we’re about to tell you is our best prediction based on our experience as well as what we see other experts saying. Beware of any market forecasts that claim to know exactly what will happen and when – we haven’t seen anyone with a working crystal ball yet!
Slow and Steady is the Name of the Game in 2024
We’re not anticipating any big or fast changes on the horizon. Expect to see home prices increasing gradually through at least the first half of the year. As prices go up, average days on the market will likely increase slightly as well. Buyers will have a little extra time to make decisions as we expect to have a healthy inventory of homes for sale. Sellers who are willing and able to be a bit patient can expect to get solid offers near asking price or better.
Since 2024 is a presidential election year we expect for there to be some impact on the market as a result. As we get into the second half of the year, and closer to election day, we won’t be surprised to see a slight decrease in market demand. People tend not to make big financial decisions when elections are looming due to nothing more than the uncertainty of what the outcome will be. The outcome of 2024’s election will likely have less impact than what everyone thinks before the election regardless of who wins.
What About Mortgage Rates?
Anyone that can accurately predict interest rates should be a bond trader – they will make a fortune that way. That doesn’t change the fact that interest rates will continue to be a big question on everyone’s minds.
The short answer is that we will all just have to wait and see what the Fed does and when they do it. If we have to hazard an educated and hopeful guess its this: rates will ever so slowly start to go down in 2024.
We have seen quite a few predictions that put mortgage rates at 5.5%-6% by the end of 2024, which would be a massive drop over the next 12 months. This seems a bit ambitious to us. It could happen, but we wouldn’t advise anyone to wait it out if that is the one factor you’re hoping to see improve before buying. With home prices also rising steadily you’re unlikely to get much, if any benefit, from holding out for a lower rate (plus, if rates do go down that far, you can look at refinancing).
We’d like to wish you all a safe and happy New Year. The Kern Team is excited about everything we see on the horizon for 2024, and we’re here to help you make your real estate goals into realities. Give us a call.
