Where Does Zillow Say South Florida Home Prices Will Go In 2024?

Zillow's latest forecast anticipates an average of 1.9% growth in home values across the USA throughout 2024. While this rate is slower than historical averages, it signals a welcome slowdown for first-time buyers compared to the rapid appreciation witnessed during the pandemic. Zillow's prediction has increased from the previous month which projected a growth of only 0.9%. The modest upward revision primarily stems from a slowdown in the growth of new listings for sale, with interest rates remaining relatively high.

Despite a significant 21% increase in new listings in February, the year-over-year growth eased to just 4% in March, highlighting the continued tightness of the housing market for prospective buyers. The impact of the Easter holiday falling in March and the occurrence of a leap year in February may be obscuring the overall picture, leaving uncertainty about how new listings will perform in April.

Zillow has also adjusted its expectations for home sales slightly downward this month due to sustained high mortgage rates limiting housing demand and sales volume. The forecast now predicts 4.06 million existing home sales in 2024, slightly below both the 4.09 million sales recorded in 2023 and the previous forecast of 4.1 million for this year. Despite a better-than-expected sales count in February, leading indicators suggest a continued softness in home sales in the months ahead.

What does this mean for South Florida?

In South Florida specifically, Zillow is predicting a 2.9% increase in home values this year, higher than the national average. 

zillow's home price forcast for south florida March 2024

As you can see, home price expectations aren't the same across the country and there are a few areas where Zillow expects prices to actually come down. As you can see from the map below, the areas that are more Blue are where Zillow expects prices to fall. The Orange or Red colors are where it should increase.

In Florida, every major metro is expected to increase in value in 2024 with Tampa increasing the most.

The number of homes that sell will be way down from the pandemic frenzy we saw due to fewer buyers able to afford todays prices and interest rates.

Posted by Andy Mandel on
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