The State of the 2024 Real Estate Market

The current and predicted state of the 2024 real estate market certainly looks different than it did a year ago. Unfortunately, sellers still want to sell like it’s 2022 and buyers want to buy like it’s 2008.

As everyone knows, mortgage interest rates went up to 8% – the highest they have been in 25 years. There are mortgage companies that are closing their doors, sellers who can’t get their homes sold, and buyers who are disappointed that their dream home they didn’t get last year now seems like it will never happen.

The good news is mortgage rates are starting to come down and mortgage applications are trending up. They are predicting there will be somewhere between 3-5 rate cuts this year and rates should even out at somewhere between 6-6 1/2 %. If you look at the history of mortgage rates over the last 35 years, the average was about 6 ½%. With lower rates, sellers will be more inclined to sell and get into something that better suits their current lifestyle. And with more inventory, buyers will have a better opportunity to purchase in 2024,

Life happens and people move

Many homeowners who have a lower interest rate may choose to stay put for now. But there are also plenty of sellers who may need to downsize, move out of town for family reasons, or relocate due to a new employment opportunity.

Without knowing where interest rates will end up and what that will do to our economy and inflation overall, we have to take real estate a step at a time. And we will! No matter what you may hear or read, the sky is not falling.

One thing about real estate is true. People will always be moving. Real estate happens because life happens. I recently sold a house for a family who moved to Colorado, another past client who got married and moved into his house, as well as a family who moved to California to be closer to family members.

Baby boomers are still going to downsize

I work primarily with baby boomers that are in the process of downsizing. The reasons for their downsizing are many but add a possible recession into the mix and that gets them thinking and moving even faster. Many of my boomers that are on a current 5 Year Plan, have indicated to me they want to move things up and do something by the end of 2024. Some of them are going to get serious about getting rid of their stuff – sooner than later!

Regardless of the current economy or inflation, we have to deal with it is what it is. In other words, I bought my first house in the early 80s when interest rates were 16.75%. I was pregnant with my daughter and we were renting a small 2-bedroom house. I wanted to get situated for the new addition to our family. Had we waited for rates to come down, it could have taken years. We made the necessary adjustments and made it happen.

First of all, set aside everything else for a minute. Before anything, you need to decide what’s important to you. What are the alternatives if you sell your house in 2024 or don’t? If you’re selling your home, why are you doing that? Do you have the time and the health to wait until the real estate market corrects? Timing the real estate market is never perfect.

How to adjust to an uncertain real estate market

If you’re buying, how important is it to you to become a homeowner? Why are you doing that? If you decide to forge ahead, you need to know that there are many great programs and options out there to get into a mortgage interest rate that works for you.

I’ve been selling real estate for over 35 years and rates had never been at 3- 4% until recently. So live your life and quit trying to predict what’s going to happen. Do what matters to you. Quit listening to others.

The predicted state of the 2024 real estate market – 3 things I know for sure

Rates will continue to drop

As I previously stated, it’s predicted that mortgage rates will probably end up around 6-6 ½%. What can you do about that? Absolutely nothing. I don’t like the price of certain things at the grocery store either but I can’t change it.

If you’re buying your first home, rates may be higher than you want but your rent will continue to go up as well. Are you going to continue to move every year to save a few bucks on your apartment rent because a new complex offers you a deal?

Home sale prices will decline

Will home prices decline or readjust? Home prices must re-correct every few years to get the market leveled off. It tends to happen every ten years or so. Trouble is, if you have to sell that house you overpaid for in 2021 or 2022, it’s not worth what you paid for it then so it becomes a real problem when the market shifts.

Home sales will decrease

It’s only natural that people tend to want to hunker down when the going gets tough. If you want to sell in 2024, be a smart seller and understand what it’s going to take to be the best house to choose from. There is no runner-up in the game of real estate. You either win or you lose.

So, if you’re selling, sell smart and do it now because as home sales drop, you’ll have more opportunities. Pick the best agent who has experience in navigating a challenging market. Home staging is more important now than ever. If you are still living in your home, hire the best stager to create that model home look that every buyer wants and will pay more money to get.

And if you’re buying, you may need to lower your expectations a bit. It’s ok. As rates drop a little later in the year, be smart and buy now while other buyers are waiting for the rates to drop. You’ll be in a better buying position with less competition and probably won’t be overpaying for a home like your friends did last year.  

Don’t despair, you’ll make the home that’s currently affordable for you into your dream home in no time. The state of the 2024 real estate market is not your opportunity for trying to keep up with The Joneses. But still, the one year forecast is a 4.01% increase in prices.

In conclusion

We have no idea what might happen with real estate or anything for that matter. Keep your blinders on and focused on what’s important to you. The last few years have proven to be unimaginable in so many different respects. What I know for sure, is once you decide something, do it and do it now. We never know how long we have or what the country is going to experience that could affect our destiny even more. In all actuality, real estate changes with the times, the same as your life!

If you have a lower interest rate but would like to sell, please contact me at (913) 515-3250. Let me share with you a cost of waiting analysis that could really change your mind about your future!

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