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  • Writer's pictureRiley Hoffer, REALTOR

Your Peek Into the 2024 Real Estate Market in Lake County, FL


2024 Real Estate Market Forecast


As Central Florida gears up for the real estate journey of 2024, three crucial factors are poised to shape the landscape: affordability, mortgage rates, and inventory.


AFFORDABILITY

Affordability remains a key consideration for both first-time homebuyers and those looking to upgrade. Despite the region's continued growth, experts predict that Central Florida will maintain a relatively affordable housing market compared to national averages. This affordability, coupled with the allure of the Florida lifestyle, may attract a diverse pool of homebuyers seeking a slice of the Sunshine State.


Economists are expecting home prices to fall approximately 2% over the next year, aiding in the affordability of new and existing homes. Coupled with the addition of new construction from builders expected to ramp up production by roughly 1 million homes, we could see a slight decrease in overall home prices, particularly here in Central Florida.


This adjustment in prices could present a window of opportunity for prospective buyers to enter the market or for current homeowners to make strategic moves.



MORTGAGE RATES

We can't look to 2024 without mentioning the all-important mortgage rate! Media loves to scare you into thinking that rates are continually increasing and that they'll never drop... that's not the case. However, they will drop slowly. The Mortgage Bankers Association is predicting that we'll end 2024 with rates at 6.1% and that we'll hit 5.5% at the end of 2025. Today, as I'm typing this on November 30th 2023, a 30 year fixed-rate mortgage sits at 7.22%.


This forecast suggests a slight, but potential shift in the interest rate landscape, encouraging homebuyers to strategically plan their financing. If you are curious about what it would look like to make a move in 2024, get connected with a local lender. They'll be able to provide you with expert guidance into your finances, and provide a peek at what a mortgage rate could look like for you.



HOUSING INVENTORY

Inventory levels are another facet that will influence the real estate landscape, particularly here in Central Florida. The demand for housing in has been consistently robust, and experts anticipate a continued imbalance between supply and demand. This scenario may lead to a competitive market, potentially favoring sellers... not dissimilar to what we've seen in 2023.


Prospective buyers should be prepared to act decisively, emphasizing the importance of thorough market research and working closely with real estate professionals.


The biggest hurdle we're currently seeing, and will continue to see, is the hesitance from current owners to sell because of their extremely low mortgage rates. The majority of homeowners in Central Florida currently benefit from favorable terms, with about two-thirds enjoying rates below 4%, and more than 90% with rates under 6%.


If you're thinking of selling, there are many resources we can utilize to lower your interest rate. For instance, interest rate buy-downs, new construction incentive programs, and more.




In summary, Central Florida's 2024 real estate market promises a delicate dance between affordability, the evolving mortgage rate landscape, and tricky inventory levels. If you're looking to make a move, don't navigate it alone. You want a friend in real estate by your side, so let's connect and get to work!

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