A new report from CoreLogic predicts that home prices will decline in five Florida metro areas in 2024. The report, which analyzes the overall health of housing markets across the United States, found that Lakeland-Winter Haven, North Port-Sarasota-Bradenton, Cape Coral-Fort Myers, and Port St. Lucie are at very high risk (70% probability) of seeing home prices decline over the next 12 months.
The report attributes the decline in home prices to a number of factors, including rising interest rates, which make it more expensive to borrow money to buy a home, and an increase in the supply of homes on the market. The report also notes that Florida has seen a significant increase in migration in recent years, which has led to an overheated housing market.
The decline in home prices is not expected to be uniform across all of Florida. The report found that Miami, Chicago, and Houston are expected to see continued growth in home prices in 2024.
Nationally, the report predicts that home prices will increase by 4.5% from May 2023 to May 2024. This is a significant slowdown from the 20% increase in home prices that occurred in 2022.
The decline in home prices is good news for buyers who are looking for a more affordable home. However, it is important to note that the report only predicts a decline in home prices in five Florida metro areas. It is possible that other areas of the state may see an increase in home prices in 2024.
Here are some additional factors that could contribute to a decline in home prices in Florida in 2024:
- The Federal Reserve is expected to continue raising interest rates in an effort to combat inflation. This will make it more expensive to borrow money for a mortgage, which could reduce demand for homes.
- The housing market in Florida is already starting to cool. The number of homes sold in the state has declined in recent months, and the average time it takes to sell a home has increased.
- The influx of new residents to Florida has slowed in recent months. This could lead to an oversupply of homes on the market, which could put downward pressure on prices.
Overall, the report from CoreLogic suggests that the Florida housing market is headed for a period of slower growth in 2024. However, it is important to note that the report only predicts a decline in home prices in five metro areas. It is possible that other areas of the state may see an increase in home prices in 2024.
Thanks for reading,
Chris
