We are in an all new real estate market with unique headwinds we’ve not seen before. With the speed at which the market changed during covid and the years after that, anything is possible, but as time goes on, the more I see things trending toward the median on the long term. What does that look like in the short term? Here are a few specific predictions.
Thoughts on what's coming in 2024
1. Interest Rates Will Continue to Fall
Interest Rates will continue to fall from their current rates around 7%, but not as far as people would like them to. If we get down into the 5% range once again, many people expect values to climb significantly again. My prediction is somewhere around 6% by the end of 2024 based on what I am reading and hearing from industry experts.
2. Time on the Market Will Increase Again Compared to 2023.
Sellers have tasted the high prices in the last few years and I’m expecting them to wait for their price rather than lower it to find the demand. With more patient sellers, the average time on the market for properties will increase.
3. Historically Low Inventory Will Remain Low
Sure, there are more homes for sale compared to the last couple of years, but we are still significantly lower than before 2020. There may be more properties for sale on a month-to-month basis as interest rates remain relatively high. A huge number of homeowners locally and across the nation locked into low mortgage rates which means they will be reluctant to sell until mortgage rates fall even more.
4. The Political Climate Will Have a Positive Effect on the Real Estate Market
I’m not declaring a vote for either side of the political aisle. However, the negative real estate market is a big enough headline that the existing administration or any future administration is going to do what they can to make the numbers look better for their own political gain. That in turn will help homeowners and those seeking to become homeowners.
