By Michael Citron
Amidst fears of an imminent 2024 recession and predictions of a 2023 housing crash, the market has shown remarkable resilience.
Despite mortgage interest rates hitting a 23-year high at 8%, real estate remains steady, showcasing a healthy appreciation ranging from 1% to 4% annually.
Economic Forecast and Unemployment Rates
The latest economic forecasting survey from the Wall Street Journal brings good news – less than half of economists believe a recession will occur within the next year. Examining historical data and macro trends, the Bureau of Labor Statistics indicates that even with expected increases in unemployment in 2024, the housing market is predicted to weather the storm.
The proximity of the current unemployment rate to its all-time lows suggests that the market won’t be negatively affected. When unemployment rises, mortgage interest rates drop. So, despite predictions of a spike in unemployment, the market isn’t poised for a crash.
Local Market Dynamics in Parkland, Florida
Zooming into Parkland, Florida, where we’ve been consistent week over week with fewer than 100 homes for sale, the market reflects stability.
While the market could potentially shift to a buyer’s market if current trends persist, the anticipated decrease in interest rates could bring a fresh wave of buyers into the scene, causing a significant market shift by the spring and summer of next year.
2023 Year-to-Date Median Sales Price
From January 1st to the end of November, the median sales price in 2023 stands at $1,156,000.
Trends in Rentals and Mortgage Interest Rates
The rental market is making waves, with a 5% increase in monthly rental costs compared to last year.
As we approach the end of the year, eyes are on the mortgage interest rates, currently sitting at 7.08%. The potential drop below 7% could signal a peak in real estate activity. I encourage potential buyers to act strategically, especially if interest rates dip into the 6% range.
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