By Michael Citron
There’s an ongoing fear of an imminent recession in 2024, and some prominent voices even predicted a housing crash in 2023. Yet, against all odds, the overall real estate market has shown remarkable resilience.
Even with mortgage interest rates hitting a 23-year high at a staggering 8%, the real estate landscape remains stable. Sure, we’re not seeing those jaw-dropping 20%, 40%, or 50% surges, but we’re not witnessing a downward spiral either. Instead, we’re experiencing a healthy appreciation ranging from 1% to 4% annually.
Economic Forecast and Unemployment Rates
The Wall Street Journal’s latest economic forecasting survey brings a glimmer of hope – less than half of economists believe a recession will hit within the next year. Examining historical data and macro trends from the Bureau of Labor Statistics, we find that despite expected increases in unemployment in 2024, the housing market is expected to weather the storm.
Traditionally, as unemployment rises, mortgage interest rates tend to drop. Predictions of an uptick in unemployment may not spell disaster for the real estate market. In fact, we’re already seeing rates responding to certain unemployment increases, indicating a potential downward trend in the future.
Local Market Dynamics in Coral Springs, Florida
In Coral Springs, Florida, approximately 175 single-family homes are up for grabs. Homes are spending an average of 53 days on the market, inching close to the two-month mark.
Although we’re not in a buyer’s market just yet, this trend could change if homes continue to linger on the market. The 2023 median sales price in Coral Springs stands at $663,250, reflecting a 3% increase from the previous year – a testament to the robust nature of the real estate market.
Trends in Rentals and Mortgage Interest Rates
There are 45 available single-family homes for rent in Coral Springs. Rentals are spending an average of 48 days on the market, with a median rental cost just under $4,000 per month, showcasing a 1% increase from the previous year.
Mortgage Interest Rate News
Currently, we’re looking at a promising 7.08%, and there’s anticipation of a potential dip below 7% by year-end. For buyers, this translates to increased purchasing power, with reports of buyers offering up to $75,000 more.
As we approach the end of the year, all eyes are on the mortgage interest rates. If they dip into the 6% range, we can expect a surge in buyer activity and even more refinancing. This could potentially create a supply issue, putting further strain on the market.
In conclusion, the South Florida real estate market remains strong and this upcoming year will be exciting for Buyers and Sellers alike.
If you’re ready to make a move or just seeking advice, reach out to me. Your trust is our priority, and I look forward to helping you make informed real estate decisions. Stay tuned for more updates in the upcoming videos!
Buy & Sell With Confidence!
Michael Citron – Owner & Realtor of Parrot Realty