If you’re considering entering the real estate market, the outlook for 2024 may interest you. Following several strong years, 2023 saw the housing market stabilize to pre-Covid levels, a trend anticipated to continue. Long & Foster Real Estate foresees a few key trends for the upcoming year:
- Limited home inventory persists. The Real Estate Market currently holds significantly fewer homes than in previous years, and this scarcity is expected to persist in 2024. October 2023’s Market Conditions Report by Long & Foster highlights nearly half the typical inventory, posing a challenge for potential buyers.
- The latest forecasts predict that mortgage rates will go down in 2024. As inflation has come down, so have mortgage rates. It’s likely that price growth will continue to cool down this year. As that happens, the Federal Reserve has indicated that it will start cutting the federal funds rate. This will take some of the upward pressure off of mortgage rates and likely help them fall a bit further. We may even see 30-year rates finally drop back below 6%. By summer, first-time home buyers should expect current mortgage rates near 4.5 percent. Inflation will cease to be a story in 2024. It’s the soft landing everyone’s been asking for.
- Stable home values continue. Most major metro areas experiencing limited inventory and sustained demand, causing prices to remain steady.
What does this mean for you?
Now might be the ideal moment to purchase a home!
While rates are forecasted to decrease this year, it’s highly likely that this shift will also lead to increased competition.
Regardless of market shifts, We at Legendary Homes remain equipped to help you with all real estate needs. With two decades in the industry, we have navigated various real estate cycles, helping our clients with buying, selling, renting, owning, and investing in real estate.