SW Florida Housing Market Predictions for 2024

The Florida housing market has seen significant changes over the past few years. With prices soaring and interest rates at a 20-year-high, what can we expect in 2024? This comprehensive analysis provides insights into the upcoming trends and forecasts for the Florida housing market, with a special focus on SW Florida, including Marco Island, Bonita Springs, Naples, Cape Coral, and Fort Myers.

Buyers and Sellers Will Wait Patiently

Homeownership has gotten a lot more expensive over the last few years, with prices skyrocketing in 2021 and interest rates hitting 20-year highs throughout 2023. What will that mean for potential Florida buyers and sellers in 2024? A waiting game is on the horizon.

Inventory is increasing, which has helped slow price growth. Many buyers and sellers are on the fence now, waiting to see what happens to mortgage rates. The sky-high interest rates we're seeing right now are keeping many folks from being able to afford a home. Many would-be sellers do not want to move if it means losing a low-interest mortgage they locked in before rates soared. So, you could wait and see what the interest rates will do going forward.

Homeownership has become increasingly expensive, with prices peaking in 2021 and interest rates rising through 2023. This trend has caused potential buyers and sellers to adopt a wait-and-see approach.

It’s hard to know exactly when rates will begin decreasing in 2024, but virtually everyone agrees that they will at some point. How much will rates go down? NAR’s economic outlook from October 2023 predicts that the typical interest rate for a 30-year fixed-rate mortgage will drop from 7.5% at the beginning of the year to 6.3% by December. A drop of just over 1% wouldn’t be a game changer, but it would make buying a home a bit more affordable for Floridians by the end of 2024.

Is It a Good Time to Buy or Sell a House in Florida in 2024?

Deciding whether to buy or sell a house in Florida should be based on individual financial readiness rather than market trends alone. It’s important to understand real estate trends for context, but you should base your decision on your individual situation.

If you’re buying a house, you need to make sure you’re financially prepared. That means being debt-free with a full emergency fund worth 3–6 months of your typical expenses and having enough cash saved up to make a down payment of at least 5–10%. (By the way, a 20% down payment is best because it means you won’t have to pay for private mortgage insurance.)

If you’re selling a house, you need to make sure you can afford the move and that doing so won’t hurt your financial situation. It also wouldn’t be a bad idea to line up a new place to live—though you never want to buy a new house before selling your old one.

Market Overview for SW Florida

Marco Island, FL: Stability with Potential Shifts

Marco Island presents a balanced market with a Month's Supply of Inventory at 8.42. The 26.62% increase in inventory suggests a potential shift towards a buyer’s market soon. Homes on Marco Island take longer to sell, with a median of 50 days on the market. However, the list-to-sold price ratio remains strong at 94.9%, indicating that properties sell close to their asking prices. The median sold price is a substantial $1,175,000, reflecting the high value and demand for properties in this desirable location. Marco Island’s market is driven by its luxurious waterfront properties, upscale amenities, and serene environment.

Bonita Springs, FL: Increased Inventory and Quick Sales

Bonita Springs is experiencing a moderate inventory, with a Month's Supply of Inventory at 7.15. The inventory has increased by 114.71% over the past year, signaling more options for buyers. Despite the increased inventory, homes in Bonita Springs are selling quickly, with a median of 42 days on the market. The list-to-sold price ratio is 95.8%, suggesting sellers are pricing their homes effectively. The median sold price is $675,815, reflecting strong market conditions. Bonita Springs’ market is influenced by its attractive coastal lifestyle, high-quality residential communities, and strong demand from retirees and second-home buyers.

Naples, FL: Stability Amid Inventory Increase

Naples presents a balanced market with a 7.15 Months Supply of Inventory, up 102.55% over the past year. This significant increase indicates a growing number of listings and potential easing of buyer competition. Homes in Naples spend an average of 45 days on the market before selling, indicating a relatively swift turnover rate. The list-to-sold price ratio is 95.8%, reflecting strong seller performance. The median sold price in Naples is $650,000, providing a reliable indicator of property values. Naples’ market dynamics are driven by its luxury real estate offerings, high-end amenities, and appeal to affluent buyers.

Cape Coral, FL: Stability with Rising Inventory

Cape Coral’s market is stable with a 6.8 Months Supply of Inventory, an increase of 91.01%. This rise in inventory suggests more choices for buyers and a potential easing of the competitive market. Homes sell within 56 days on average, and sellers receive 96.8% of their list prices, indicating a healthy market. The median sold price is $399,999, reflecting robust market activity and stable pricing. Cape Coral’s market is influenced by its extensive canal system, boating lifestyle, and affordable housing options.

Fort Myers, FL: Increasing Inventory and Competitive Pricing

Fort Myers has a balanced market with a 6.36 Months Supply of Inventory, up by 115.59% over the past year. This significant increase suggests more options for buyers and a potential shift towards a buyer’s market. Homes take about 51 days to sell, indicating a relatively quick sales process. The list-to-sold price ratio is 95.5%, suggesting sellers may need to be flexible with pricing to attract buyers. The median sold price is $372,000, reflecting a competitive market with increasing inventory. Fort Myers’ market dynamics are driven by its historical charm, growing downtown area, and attractive waterfront properties.

Conclusion

The 2024 housing market in SW Florida presents opportunities and challenges. Staying informed about these trends will help you make better decisions whether you're buying, selling, or investing.

Thing to Do In SW Florida: Kayaking in the Everglades: Marco Island and the Everglades offer amazing kayaking spots, with complex and simple waterways, perfect for beginners and experts alike. You can be closer to nature as the waterways are thick with vegetation, and you might even spot manatees along the way.

Fun Fact: Marco Island is ranked as the number one island in the US and fourth in the world by Trip Advisor. There is so much in store for the visitor in Marco Island while at the same time, it maintains its quiet charm.

For more insights, check out my other articles:

• How to Prepare Your Home for Sale
• Should You Sell Your Home Fast for Cash?
• Home Seller Negotiation Secrets