2024 Market Predictions That Will Set You Up for Success
Predictions on the 2023 housing market ranged from the major—with some anticipating a crash that would rock the market and US economy—to the more measured—with others predicting a continuation of the conditions we saw in 2022, affected largely by the high interest rates that have caused buyers and sellers to reevaluate if the time is right for them to make their move.
As we look forward to 2024 and prepare ourselves to navigate a new year’s market, we’re covering some of our predictions for trends and shifts to look out for and how our buyers and sellers can prepare. With over six decades of combined experience, we’ve seen countless markets come and go. Throughout the years, we’ve proven that it is possible to exceed our clients’ expectations, even amid challenging markets. With the right strategies, compelling marketing, a world-renowned brand like Sotheby’s International Realty supporting us, and the kind of market insights and analysis that keep us ahead of the curve, we guide our buyers and sellers to success.
The big question on everyone’s mind is: will mortgage rates come down? We believe that they will, given the downward trend we’ve already witnessed. It’s not just homebuyers who are affected by rates. The entire industry will benefit from a decrease. As Jessica Lautz, deputy chief and vice president of research at the National Associate of Realtors, states, “It should be easier for builders as rates go down, as they need to borrow to build.” Fewer barriers for builders mean more supply for buyers to choose from. Additionally, more sellers will be willing to give up their current low mortgage rates if they can trade it for one significantly lower than the 8 percent we saw in October of this year. The slow decline in rates will be a relief, but buyers should likely not get their hopes up for anything much lower than 6 percent.
Affordability will remain a hurdle for many buyers, particularly for those who are making their first home purchase, with high interest rates and home prices not expected to drop. Sellers should be encouraged that prices are not projected to fall, but should also be prepared to strategically price, market, and negotiate to receive a favorable sales price. We should certainly expect to see more sales activity than we did in 2023, but demand will still be high, meaning most markets in the country will remain in favor of sellers.
As Senior Global Real Estate Advisors, we provide our clients with top-tier service and a shared commitment to excellence that ensures outstanding results. We’re honored to be ranked within the top 5 percent of all Realtors nationwide, and we know that accomplishments like those are reminders of all of the happy clients we’ve served throughout the decades—which is the best reward. We’re passionate about our region’s unique markets and would love to further discuss where we see it heading and how we can make its future conditions work to your advantage. Contact us today to start your journey.