Miami Real Estate Learning Center

MY 3 REAL ESTATE PREDICTIONS FOR 2024

The real estate market is expected to improve in 2024, here are my predictions: • Interest rates: For mortgages, interest rates went up to nearly 8% last year, but are expected to go to around 6%. This is because lower inflation and planned reductions in the federal funds rate are likely to impact mortgage rates.

Supply and demand: The balance between demand and inventory will shape home prices in 2024. Even though many people think that prices might go up a bit, I think they will stabilize or even drop a little. If there aren't many houses for sale and lots of people want to buy, prices might go up. If the economy is not doing well, or more new homes are being built, the balance could change. In Miami, many new buildings are being built, this might help to see prices drop.

Sellers ready to jump: Homeowners with low mortgage rates were hesitant to sell their homes, but this is expected to change as mortgage rates go down. When mortgage rates get close to 6%, more people are expected to buy and sell homes. Homeowners might also come to realize that interest rates will not decrease much more any time soon. As a result, they can comfort themselves by realizing that the extensive capital gain from the sale of their home can help them deal with a slightly higher monthly payment on the purchase of a new one. Builders might also offer discounts or other packages to encourage new buyers.

• The market dynamics, including lower mortgage rates and a potentially balanced supply and demand, contribute to a positive outlook for real estate transactions in the coming year. I believe that 2024 will be a good real estate year for buyers, sellers and of course real estate agents like me.

WHY SHOULD YOU SELL YOUR VACATION HOME ?

Owning a vacation home might sound awesome, but there are some big reasons why selling it could be a good move. Owners faces many challenges with their vacation home. If your vacation home doesn't generate a consistent rental income, it might result in financial losses rather than gains. Unanticipated repairs, particularly for older properties, can also have a negative impact on your finances.

Dealing with troublesome tenants or empty periods can be a headache. As your investment goals change, your vacation home might not fit anymore. Over time, your property's value might go down, especially if it needs repairs or the market isn't doing well. Managing a vacation property takes time, and it can be stressful. If it's causing you constant frustration, it might be time to sell. Also, if lots of similar properties flood the market, finding good tenants or selling at a good price might get tough.

In conclusion, I recommend to regularly evaluate your real estate portfolio, staying informed about market conditions, and reassessing investment goals are crucial aspects of successful real estate management. While your vacation home may have once been a great idea, circumstances change, and selling the property could be the best way to move forward. If you are thinking of selling your vacation home now, there is a shortage of housing which means that you will probably sell your home fast and at a great price.

READY TO BUY - NOT READY TO SELL !

People want to buy homes because mortgage rates have dropped a little, but those who already own homes aren't selling. The decreasing rates have made buyers excited, but not many homeowners want to sell their homes. This means prices stay high because the inventory is low.

There aren't many new homes for sale, and prices stay high. Mortgage rates need to drop more consistently for sellers to make a move. This difference between people wanting to buy and people not wanting to sell keeps the housing market from getting better volume of sales. To give you an example, if my clients want to buy a house and they really like it, I wouldn't recommend waiting.

Many think the real estate market sales will go up in 2024, especially in the first few months because of the mortgage rates might drop further that might encourage more buyers to purchase homes. The housing market has slowed since 2022 because the government tried to stop prices from rising too fast. Some people expect more homes to be for sale next year because sellers might not wait for rates to drop even more. This problem regarding the housing market may be solved soon if my predictions here above are true.