Unveil Emerging Real Estate Trends for 2024
After a grim year of unprecedentedly high interest rates, the housing market could come roaring back from its beauty sleep. And here are several remarkable real estate trends in the new year 2024. Keep watching to know what is in store and have the best preparation for a new battle.
An Overall Look At the Housing Market
2023 was a cast down year for many aspiring home buyers.
In October, mortgage rates unprecedentedly arrived at 7.79%, while median home prices in the third quarter exceeded $400,000. Moreover, in July, average monthly payments reached their highest level ever at $2,306, according to Intercontinental Exchange, a financial technology and data services firm.
Nevertheless, 2024 is expected to be a better year for shopping in the housing market, at least for some. Industry insiders predict that although home prices will probably stay high—and even rise in some markets—prices in some regions of the nation will likely decline. After policymakers held the federal funds rate steady for a third consecutive meeting on December 13, economists are likewise hopeful that the Federal Reserve has completed its rate-hiking campaign to reduce inflation. The federal funds rate is the benchmark interest rate financial institutions charge each other for overnight loans; it tends to indirectly influence mortgage rates.
Even so, affordability challenges is predicted to persist in 2024. Prices will typically rise due to low inventory and pent-up demand, and high mortgage rates will persist until the Federal Reserve lowers the federal funds rate. In other words, real estate industry could be a “flat stretch” ahead for the housing market. “If the 2020-2021 housing market was too hot, then the 2023 market was probably too cold, but 2024 won’t yet be just right,” Fleming said in his 2024 forecast.
Real Estate Trends to Expect for 2024
The National Association of Realtors (NAR) released its forecast for 2024 in December last year, predicting a growing housing market with home sales increasing and mortgage rates lowering within the United States.
Keep reading to learn what to expect for the year ahead.
Prices Stay the Same while Sales Keep Increasing
Lawrence Yun, Chief Economist of the National Association of Realtors predicts that overall home prices in 2024 will mostly stay the same year over year, with an increase of only 0.9%. On the other hand, home sales should start to increase, with a 13.5% surge predicted. Due to quicker job growth in the southern states and more reasonably priced housing in the Midwest, metro markets in the South and Midwest are anticipated to perform better than others.
Interest Rates Go Down
It’s been reported that mortgage rates are expected to have peaked in 2023 and will witness its decline this year. In time for spring in the United States, the average 30-year mortgage interest rate is expected to decrease to 6.3%.
Demand for Housing to Start Picking Up and Accelerating
According to Mr.Yun, the decline in mortgage rates and income increases should help the housing market rebound. Along with an anticipated 30% rise in the number of available homes due to additional listings coming on the market as frustrated sellers can no longer wait
Top 10 Dynamic Housing Markets in 2024
For a number of factors, including slower home price appreciation, more accessible listings for first-time buyers, and robust employment growth, it is anticipated that these 10 real estate markets will swiftly regain their demand for housing.
- Austin-Round Rock-Georgetown, Texas
- Dallas-Fort Worth-Arlington, Texas
- Dayton-Kettering, Ohio
- Durham-Chapel Hill, North Carolina
- Harrisburg-Carlisle, Pennsylvania
- Houston-The Woodlands-Sugar Land, Texas
- Nashville-Davidson–Murfreesboro–Franklin, Tennessee
- Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware-Maryland
- Portland-South Portland, Maine
- Washington-Arlington-Alexandria, D.C.-Virginia-Maryland-West Virginia
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