Lower Rates May Revive Real Estate Sales Competition In Florida

Richard Eimers, Broker Owner August 19, 2024

As we enter the fourth quarter of 2024, the Florida real estate market is poised for a potential shift, driven by lower mortgage rates and changing buyer dynamics. Here’s how the market evolved in July and what buyers and sellers can expect in the coming months.

Buyers Gained Advantage in July

In July 2024, buyers in Florida found themselves in a more favorable position:

• Increased inventory: The number of active listings rose by 52.6% year-over-year, providing more options for house hunters.
• Longer days on market: Properties took an average of 52 days to sell, up from 46 days the previous year, giving buyers more time to consider their options.
• Price adjustments: 1,304 properties saw price decreases in a single week, indicating sellers’ willingness to negotiate.

Impact on Fourth Quarter 2024

As mortgage rates are expected to ease to around 6.5% by year-end, the market dynamics are likely to shift again:

For Buyers:

1. Increased competition: Lower rates may bring more buyers back into the market, potentially leading to bidding wars on desirable properties.
2. Improved affordability: Reduced mortgage rates will enhance purchasing power, allowing buyers to consider higher-priced homes.
3. Urgency to act: With the market potentially heating up, buyers may feel pressure to move quickly on attractive listings.

For Sellers:

1. Renewed interest: Lower rates could reignite demand, potentially shortening the time homes spend on the market.
2. Pricing strategy adjustments: Sellers may need to reassess their pricing strategies as the market becomes more competitive.
3. Improved selling conditions: The combination of lower rates and increased buyer activity could create a more favorable environment for sellers.

Market Outlook

The Florida real estate market in Q4 2024 is expected to be more balanced, with both buyers and sellers finding opportunities:

1. Moderate price appreciation: Home prices are forecast to see a 3-5% annual appreciation.
2. Inventory stabilization: While inventory has increased, it remains below pre-pandemic levels, supporting price stability.
3. Post-election boost: As uncertainties around the 2024 presidential election settle, renewed consumer confidence may further stimulate the market.

As the market evolves, both buyers and sellers should stay informed about local trends and be prepared to adapt their strategies accordingly. Working with experienced real estate professionals can help navigate these changing conditions and make the most of the opportunities presented in Florida’s dynamic housing market.