TAMPA, Fla. — It’s the end of a year in which soaring home prices kept many people out of the market.
Two decades of high mortgage rates and low inventory will shape Tampa Bay’s real estate market in 2023, according to area experts. But they are optimistic about what 2024 will bring for the region.
Adam Grenville, president of Greater Tampa Realtors, predicts lower interest rates and more financing options in the new year.
“We’re starting to see some changes in the market or a slight decline in interest rates in 2024, which is great for all buyers,” Grenville said.
Cindy Haydon, an associate broker at Future Homes Realty, expects lower interest rates to give younger buyers more choice in housing options.
“Most people don’t realize that we’re entering the biggest buying bubble since the baby boomer generation. So we have 50 million people between the ages of 28 and 38, but most of them are 34. They’re buying their first home at age 30. But you know, “They’ve been trying. But at these interest rates it’s difficult,” Haydon said.
However, although interest rates are falling, the price of living in paradise is predicted to rise again in 2024.
“We’re not going to scream. I think it’s going to ratchet up,” Haydon added.
“While home prices continue to rise year over year, we don’t see this situation changing anytime soon, as inventory remains severely lacking,” Grenville said.
When it comes to “hot spots,” experts predict rural areas will become increasingly desirable by 2024 as the Tampa Bay region continues to grow.
“I think there’s a lot of new construction going on, especially in Pasco County, north of Tampa,” Grenville said.
“Places like Lakeland boomed, and then we saw it all the way to Pasco and maybe Citrus,” Haydon said. “People are looking for a little more space to garden, grow, raise chickens, etc. But that’s something you wouldn’t have heard of five years ago.”