A favorable turn for homebuyers in South Florida has emerged that may make a big difference as U.S. home prices are looking to slow down in 2024-2025. According to the Q4 2023 Fannie Mae Home Price Expectations Survey, a collaboration between Pulsenomics, LLC, and housing experts, there is promising news to look forward to with this positive shift in home prices. 

The SunSentinel stated, “The region is likely at the peak of its housing cycle, as sales slow and prices flatten out, but this is all very typical of a housing market.” 

In South Florida, the demand is still growing strong because people are continuously moving to Florida, where there is a need to keep up with the demand. For South Florida residents, the prices should be relatively flat and stable over the next few years. 

The survey revealed that the annual national home price growth in 2024 will be at 2.4% during the 2024 calendar year and 2.7% in 2025. As the new year gets closer, this may just be the encouraging news homebuyers were looking for. This comprehensive report, which draws insights from over 100 experts from across the housing and mortgage industry, utilizes the Fannie Mae Home Price Index to calculate the changes in national home price percentages. On average, the panel of experts predicts that the home price growth will clock in at 5.9% in 2023, followed by slower growth in 2024 and 2025. Looking beyond, this colossal news may be a turning point of improved affordability for homebuyers. 

Alongside home prices, these experts shared their expectations regarding future mortgage rates. They foresee the 30-year fixed rate mortgage rate eventually slowing down to an average of about 5.7%, which is excellent news for South Florida folks. With this change, perhaps look into buying now instead of waiting for the rates to drop. 

Looking down the road, Terry, Founder of Pulsenomics, added that we saw a growth rate for 2023 of 5.9%; surveyed experts do not foresee this momentum carrying over into 2024 — which is an encouraging consensus for aspiring homebuyers as we approach the new year. Loebs, who founded Pulsenomics to provide research and development that monitors both data analytics and attitudinal shifts within the public at large, finds the survey insight encouraging. With these insights, those seeking to purchase a home can hopefully keep their fingers crossed and look forward to a more favorable market to purchase their homes in the coming years.

Doug Duncan, Fannie Mae Senior Vice President and Chief Economist, said, “Looking beyond the recent volatility in mortgage rates, panelists expect future rates to decline meaningfully from the recent highs of 8 percent.’’

Samantha Minns
RWorld Content Writer
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Source: Florida Realtors®, SunSentinel