HILLSBOROUGH COUNTY, Fla. — As part of our Price of Paradise series, we are talking to experts to get an idea of what the housing market will look like in the new year.
According to a Redfin report, home prices are slightly down, showing the median sale price is sitting around 400K. We spoke to local real estate experts who say interest rates are starting to come down, and that will be a game changer for people trying to buy a home.
“I currently have a client getting quoted high 6’s right now. So this year we've really been hovering in that 7 to 8% range," Lauren Swoboda with Compass Real Estate said
She explained the Federal Reserve is expected to continue to drop rates, which she said will pull buyers back into the market.
“Which is going to increase the demand for buyers and bring them back to market after being in about a year or so hiatus,” Swoboda said.
She said this will create some more competition in 2024 because there will be more buyers while inventory stays the same.
Swoboda said she thinks 6% is the magic number that will bring buyers back into the game, but a 6% interest rate on a $400,000 home is not doable for many people, especially first-time home buyers.
We also spoke to Ken H. Johnson, a real estate economist. We asked him if the high values and rates are killing the dream of owning a home.
“Yes, it’s difficult to live here, but the dream of home ownership is not gone. It’s perhaps delayed, which that's happened before,” Johnson said.
He said he expects things to level out in the next few years. As for 2024, he thinks we are at a plateau with pricing, which is promising.
Johnson said, “I’m not so sure prices will ever come down so much, which they could, but we won't see a crash like we did before. We could see rates flatten.”
He said incomes will catch up with the high home values, but that may take a few years. Meanwhile, Swoboda said if the goal is home ownership right now, it's still possible.
“I’m not going to pretend like it's not a challenging time. It is. Rates are high; values are high. What I would say to buyers that are struggling ring now, You don't have to have your dream home as your first home,” Swoboda said.
She explained there are several programs to help people buy a home. Click here for homeownership assistance.