2024 Real Estate Market Predictions for Investors
Summary
The first quarter is over, so it’s time to fine-tune your investment strategies with our 2024 real estate market predictions.
Now that the first quarter is over, it’s time to dust off the crystal ball and fine-tune your investment strategies for the rest of the year with our updated 2024 real estate market predictions for investors. Here at Naples Relocation Experts, that’s practically a tradition!
Remember my predictions I made back in January? Well, buckle up because I’m here to deliver the full forecast for the 2024 market.
2024 Prediction #1: The Naples Market Gets Real (and That’s a Good Thing!)
Due to the seasonality of the Florida Coast, sales will slow as the winter season ends and the snowbirds return home. During peak seasons, activity is high, and property can go from listing to purchase in as little as two days. The bulk of sales within a year in the Naples area generally occur from March to May, with a boost in sales as the season winds down.
As we move into the summer months, Sales will slow back to an average rate of 2 weeks on the market rather than two days. This isn’t a bad thing; a good property at the right price will always sell, no matter the season. This transition will also bring balance to the market overall, and it is looking to continue to remain stable while supporting moderate growth.
2024 Prediction #2: The Election Year is Going to Have an Impact
The presidential election season is back again. Elections consistently impact many financial sectors, including real estate. Depending on how the election goes, there can be changes and adjustments to tax policies, regulation of land usage, building permits, infrastructure developments, and more. With such a divisive election this year, this is something to pay close attention to while considering your next property.
2024 Prediction #3: Growth, Growth, Growth
Population Growth.Commercial Growth. Investment Growth.
Naples is currently a buyers’ market, attracting businesses from everywhere to relocate which will contribute to the local economy. More people coming to live and do business in Naples means more people needing property here.
Population growth increases demand, and increased demand overcomes every investment obstacle. As population growth continues, which it will, the area will grow faster than others nationwide. Currently, national conflation is 2-3%, but Naples consistently is 4-5% on average.
When rates come down and growth goes up, it doesn’t matter if residential, commercial, or investment. Rates are trending to improve later in the year, with more buyers entering the market.
“Buyers, sellers, business owners, entrepreneurs, if you run a business with a good product, you will be successful.”
2024 Prediction #4: Naples will continue to be a safer investment than other areas
We focus on Naples because we believe the area has opportunities for strong investments and great returns in the middle of paradise. Naples is desirable with a growing economy, increasing population, a luxurious and high-quality lifestyle, and limited inventory. This is a perfect storm for real estate success. While it comes with a high price tag for an initial buy-in, property values have shown a steady appreciation over time in Collier County.
According to the February Market Study by Rocket Mortgage, the average price of most homes, single-bed occupancy excluded, grew in value anywhere from 1.9%-16.5% for an average growth of 13.8% over housing prices last year.
Other 2024 Real Estate Market Predictions
Housing Demand Will Continue to Outpace Housing Inventory | Forbes
“With many homeowners “locked in” at low-interest rates or unwilling to sell due to high home prices, demand continues to outpace housing supply—and likely will for a while. Housing stock remains near historic lows, especially entry-level supply, which has propped up demand and sustained ultra-high home prices.”
Housing Prices Will Remain High | Forbes
“Though down from its 2023 high of 7.79%, the average 30-year fixed mortgage rate in 2024 remains well over 6% amid rising home values. As a result, home buyers continue to face affordability challenges…And the news doesn’t appear to look much better for eager home buyers in the months ahead. Housing experts predict that mortgage rates will stabilize at a median rate of 6% by the end of 2024.”
Housing Sales Will Continue to be Low in Comparison to Previous Years | Realtor.com
“The number one reason homeowners aren’t trying to sell is that they just don’t need to; concern about losing an existing low-rate mortgage is the top financial concern cited. Our current projection is for 2023 home sales to tally just over 4 million, a dip of 19% over the 2022 5 million total. ”
Is 2024 the Right Year for You to Invest in Naples?
Every year has the opportunity to be a good year to invest in Naples. Trends and predictions come and go, and while it is important to educate yourself to ensure you are making a good financial investment, you don’t have to do it alone. Market trends and predictions aren’t always a hard line you have to ride.
We are passionate about finding like-minded people who are knowledgeable in investment but maybe don’t know Naples as well as we do. We are, after all, the experts, and we want to share our passion for the Naples community and come together to make profitable investments not only for our clients but also to give back and grow the community in the place we call home.
We believe in the opportunities Naples has to offer.
Being a destination locations means that there is always a demand, combine that with the growing economy, population expansion, and new construction and we are sure that if you want to get involved in the Naples area, we can help find the right project for you, whether that be today, tomorrow, or a year from now.
When it comes down to it, it is our job to guide and protect our client’s investments and maximize ROI for the entire team.
Contact Us
Contact Naples Relocation Experts today if you’d like to learn more about our 2024 real estate market predictions, and help you find the right properties to build your investment portfolio in the Naples area and beyond.
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