#1 – Bursting The Housing Bubble Narrative in 2024 – Despite some folks thinking there’s a housing bubble going on, we strongly disagree. Yes, the housing market slowed down in 2023, but only because more buyers were faced with higher mortgage rates. Foreclosure starts are up a bit, but still not as much as before the pandemic. Some folks might fall behind on payments in 2024, but it’s just going back to normal, nothing to worry about. We see price growth and mortgage rates that will continue to ease in 2024 as inflation improves—and with that we predict there will be more buying and selling of homes in 2024, with no bubble in sight to burst!
#2 – Mortgage Rates to Ease Up, But Slowly – Analysts predict mortgage rates may drop to 6% by year-end, a welcome change after 2023’s historic fast paced increases. The anticipated decline is good news for homeowners, as lower rates mean reduced monthly payments. Economists foresee this trend continuing into the new year, driven by expected rate cuts from the Federal Reserve.
#3 – More Houses for Sale, but Not a Flood – If you’re selling a home in 2024, you’ll probably have the upper hand because more people want to buy than there are homes available. The effects of pandemic era-mortgage rates will still be evident through the continuing notable shortage of homes for sale. It makes sense that many homeowners, who have mortgage rates around 5% or less, aren’t too eager to sell. Thankfully rates are dropping, and as they get closer to what current homeowners have, we predict that this will be enough incentive to motivate more people to sell.
#4 – Home prices will increase, but affordability will remain the same – Despite some experts saying it will get harder to afford a home, we don’t see it that way. Home prices won’t change much, maybe just 1% up tops, and mortgage rates are dropping. So, affording a home should be pretty similar next year.
#5 – New Construction to Lead the Way – We’re pretty sure (and excited!) about this one. Homebuilders are set to increase their market share in 2024. Long-term housing deficit, lower mortgage rates, and a lack of resale inventory are expected to drive demand for new single-family construction. Chief economist for the National Association of Home Builders, Robert Dietz, predicts a rebound in single-family housing construction in 2024, marking the first increase after declines in 2022 and 2023.
Thinking of Selling?
We are predicting a wonderful 2024 spring real estate market for selling! Concerned about your outdated property affecting its market value? Sell smart with us! Our expert realtors not only sell homes, but also offer free design services to maximize your property’s appeal. List with us to ensure your home stands out, captivates buyers, and fetches top dollar. Let’s transform your property into a market-ready masterpiece! Interested in a free consultation? Click below to schedule!
