The Housing Market in 2024
Spring is a time when many people choose to buy a new home but that might not be the case this year. High mortgage rates and skyrocketing home prices have many people holding off on making this purchase. The low housing stock is compounding the problem, so countless individuals are deciding to stay where they are. Is there hope that things will change in the coming months?
Rising Home Prices
Home prices in America declined at the end of 2023, but they remain high year-over-year. Fortunately, anyone who talks to a real estate agent will probably hear the rise in home prices is expected to slow in 2024. Other factors play a role, such as market supply and region, but there is hope for improvement.
What to Expect in 2024
Before the housing market can recover, certain things must happen. The number of homes for sale must increase dramatically before home prices will level off or drop. Mortgage rates must also come down. Thankfully, experts believe that will happen this year, although it needs to be a slow decline. If the rates fall drastically, people might start buying up available homes quickly, leading to new market supply issues.
Increased demand and a lack of homes to buy continue to be problems seen in the market. That probably won’t change this year unless the mortgage rate drops below five percent. With housing stock at near historic lows, prices continue to rise. Unfortunately, this problem tends to affect buyers looking for an entry-level home the most. This doesn’t mean people should give up hope.
The National Association of Home Builders has seen a rise in builder sentiment. Those in the industry are more optimistic about the future. In addition, new single-family building permits rose in early 2024. This monthly increase has been consistent over the past year.
Home Sales
Existing home sales might be slightly thawing, according to the National Association of Realtors. January saw a gain in existing home sales, which experts say is good. However, many buyers flock to new homes, as there is a larger supply. The problem of home affordability appears to be a big factor that is keeping sales from climbing. Mortgage rates have dropped but not enough to entice more people to buy.
Surviving a Challenging Market
Individuals looking to buy a home now must know how much they can afford to pay each month, including insurance, repairs, maintenance, and more. Furthermore, they need to prioritize what is most important in a new home, so they can act quickly if the right property comes on the market. Once this information has been gathered, it’s time to start watching homes. It’s easy to become discouraged, but this process takes time. People shouldn’t give up too soon or buy an overpriced house simply because they want to own a new property.
Sellers also need to take care in this market. They must know how to price the home to generate interest and be prepared to negotiate with potential buyers. The home should be in excellent shape and have curb appeal. Sellers should work with a local real estate agent to learn what buyers want, so these features can be highlighted when marketing the property.
The housing market is not expected to crash anytime soon. Buyers and sellers must recognize this and act accordingly. Work with a reputable agent whether buying or selling a home to ensure the best deal possible. This trained professional is ready to help parties achieve their goals.
