Will mortgage rates come down? Florida's real estate market outlook for 2024

If you are looking to purchase a new home, you may be holding out for a drop in mortgage rates.

And while South Florida tends to follow its own path when it comes to national housing trends, one real estate expert says we may still see some relief next year.

According to Redfin's 2024 housing predictions, mortgage rates are expected to steadily decline next year.

The online real estate company is predicting 30-year mortgage rates will dip into the 6% range which is some good news for potential homebuyers.

"With rates already dropping, interest rates and that little bug, that perception for buyers, especially first time home buyers that have been sitting on the sideline for over a year now waiting for rates to come down, it's already triggering, I guess you could say, the hype that it's time to buy," said Real Estate Broker Elisha Lopez.

Lopez is broker owner of a real estate company in Florida and she told NBC6 an increase in demand may impact prices.

"There's more inventory now, but if you flood the market again with buyers that are going to start looking out anyway and then all those buyers that have been waiting, the natural thing that's going to happen is that prices are going to go up because there's so much demand again," Lopez said.

Redfin says they expect new listings and home sales to rise in 2024 and it also expects prices to fall significantly in parts of coastal Florida such as Cape Coral, because the risk of natural disasters is driving up the cost of home insurance.

Still, Lopez expects Miami to continue to be a very competitive housing market.

Southeast Florida has just always been its own little spot set on its own, completely different market than anywhere else in Florida and in the whole country," Lopez said. "And that's, of course, because of the melting pot and international and everybody wants to be in Miami."

So if you are looking to buy next year, especially if you're a first-time homebuyer, make sure to connect with a real estate agent who can help guide you through the process.

Lopez said there are still plenty of financing options out there to help people looking to buy their first home and you may even find sellers who are willing to pay for closing costs.

This is especially likely if a listing has been on the market for a while.

And her final tip is to negotiate. Even in a competitive housing market like South Florida, Lopez said there is always more room to negotiate a better deal.