2024 Real Estate Trends: As we head into 2024, home buyers are crossing their fingers for a shift in the real estate market. After an intense and demoralizing 2023, with soaring mortgage rates and extremely high home prices, we’ve seen some positive trends suggesting a more positive year ahead.
Let’s start with the positive news: Mortgage rates are currently on the decline, offering a significant relief for homebuyers. In the past week, the interest rates for a 30-year conventional fixed-rate mortgage have dropped to around 6.25%, the lowest in a while. This decline brings a welcome sense of relief, making homeownership more feasible for those contemplating the leap into the housing market.
Challenges persisting: Despite the lowering of mortgage rates, the historically low housing inventory continues to keep home prices insanely high, particularly affecting first-time buyers.
Regarding the 2024 Real Estate market, some areas may experience a stabilization of home prices but the overall trend indicates that prices will remain elevated. Mark Fleming, chief economist at First American Financial Corporation, anticipates a “flat stretch” for the housing market, suggesting that a perfect balance may not be achieved anytime soon. Economists are optimistic though- that the Fed has concluded its rate-hiking campaign to tackle inflation. However, the impact of elevated mortgage rates is expected to persist until the Fed implements cuts to the federal funds rate.
Now, will there be a housing market crash in 2024? NO! The likelihood of a housing crash remains super low. Homeowners today are still experiencing positive home equity than those that bought in 2008. It is extremely important to make sure that you talk to a mortgage lender before you take the plunge to look at homes, so you can calculate monthly payments to see what payments you are comfortable with. Mortgage Calculator
To have a proper housing market recovery, increased home inventory is extremely important to ease the inflated prices. At the same time, interest rates need to also GRADUALLY cool off to prevent another surge. While 2024 holds promise for those navigating the real estate market, challenges in affordability and high home prices remain. Prospective buyers should monitor the market trends closely and stay informed about any policy changes or developments that could impact their home purchasing decisions. As the year unfolds, the real estate market may see shifts that create new opportunities for those looking to make a move in the housing market.
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