Real Estate Trends 2024: Housing Marketing Predictions That You Should Know
Are you a home buyer waiting for property prices to go down soon? According to numerous forecasts, it’s not going to be likely.
According to an article by Forbes, "U.S. home prices posted an annual 6.4% gain in February—the eighth consecutive month of year-over-year increases and the fastest annual rate since November 2022."
And if we had to make a prediction based on current real estate trends, real estate prices will likely remain high or even increase.
Here’s why.
In a balanced real estate market, there should be enough homes for sale to satisfy demand for about six months. This means that, at the current rate of sales, it would take around six months to sell all available homes, even if no new homes were listed.
However, the market currently has only about three months' worth of inventory.
When there are fewer homes available, more buyers end up competing for the limited number of properties available. And this shortage of homes, leading for existing buyers to compete for available inventory is driving up home prices.
Now let’s look into how interest plays into all of this.
When interest rates are high, homeowners are less likely to sell their properties because it means they would have to give up their current low-interest mortgage and take on a new, more expensive one. Again, this reluctance to sell leads to fewer homes being available on the market. And as USA Today reports, “Through all the interest-rate turbulence, housing prices have remained stubbornly high.”
Additionally, builders are not constructing enough new homes to meet the current demand. This lack of new construction creates a bottleneck in the market, where the demand for homes exceeds the supply. This imbalance between supply and demand continues to put upward pressure on home prices.
Expecting a large number of foreclosures and short sales to bring affordable homes back to the market is also unrealistic.
Most homeowners can afford their mortgage payments and have significant equity in their homes, which helps protect them from financial troubles. Default rates are currently low, even with higher borrowing costs and record-high home prices. This indicates that homeowners are generally in a strong financial position, which reduces the likelihood of a surge in foreclosures.
But what if interest rates go down? Would that help bring home prices down?
It might actually make the housing market even more competitive.
Lower rates make borrowing cheaper, which bring monthly mortgage payments lower and allows more people to qualify for home loans. This would likely increase the number of buyers in the market, ultimately leading to more competition for the limited supply of homes and causing prices to go even higher.
Adding to that, current homeowners might also choose to refinance at lower rates instead of selling, further reducing the number of homes available for sale.
Start by assessing your financial stability and obtaining a mortgage pre-approval. Contact a mortgage lender to review your finances and credit score. This process helps clarify your budget and speeds up the buying process, showing sellers that you are a serious buyer.
When you find a suitable property, act promptly. Market prices can rise at any time, so securing a property swiftly can save you from paying more later. Have your documents and funds ready and make decisions quickly to submit competitive offers.
An experienced real estate agent can provide valuable insights into market trends and help you make strategic offers. Choose an agent with a strong track record in your target area to help identify listings quickly and guide you through the offer process.
Explore emerging neighborhoods or fixer-uppers for potentially better deals. These properties can be more affordable and offer higher long-term value as neighborhoods develop or homes are improved. Research areas showing signs of growth and properties priced below market value due to needing work. Ensure that the total investment, including renovations, makes financial sense.
Flexibility with your home criteria and closing timelines can make you more appealing to sellers. Be open to adjusting your list of must-haves or considering homes that might not meet all your criteria but are within your budget. Discuss with your agent the advantages of various closing timelines that could better align with sellers' needs.
In a difficult housing market, we cannot overstate the importance of having a good realtor on your side.
There’s low supply of home, prices, and interest rates are high, everyone wants to get the most out of their money. Good property will sell quickly. A good agent puts you well ahead of all the people you’re competing against. So be sure to get in touch with us today and visit https://bio.site/onyxrealestate916.
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