Are you buying or selling a property in 2024?
You might be wondering what the real estate market looks like this year.
So we’ll give you expert predictions, actionable tips, and clarity on what to expect.
But to give you an overview, 2024 offers a calmer market and predicted that home sales will recover slightly, mortgage rates and prices will drop, and more sellers will put their homes on the market.
Whether you are a first-time buyer, a seasoned seller, or a savvy investor, this 2024 Real Estate Market Forecast is a helpful resource for you.
Let’s begin!
Expected Home Price Trends in 2024
The real estate market is influenced by the economy, supply and demand, interest rates, consumer preferences, and government policies. These factors can create opportunities and challenges for both buyers and sellers, depending on the market conditions.
One of the most important questions for home buyers and sellers in 2024 is: What will happen to home prices?
After a turbulent 2023, when home prices soared to record highs amid low inventory and high demand, many wonder if the market will cool down or heat up in the new year.
According to various forecasts and predictions, home prices are expected to hold steady or decline slightly in 2024, as the housing market gradually thaws and becomes more balanced.
However, these trends may vary depending on the region, the property type, and the price range of the home. Here are some of the factors that will influence the home price trends in 2024:
- Mortgage rates: The cost of borrowing is a major factor in determining housing prices. Mortgage rates rose to their highest level since 2019 in 2023 and are expected to fall in 2024 as the Federal Reserve reduces interest rates to combat inflation and stimulate the economy. Lower mortgage rates will make homes more affordable and increase the demand for housing, which could support home prices or even cause them to rise in some areas.
- Home Sales and Inventory: Following a 28-year low in 2023, home sales are expected to rise in 2024 and 2025 as mortgage rates fall. This tendency may continue until 2028. New house sales are also likely to climb, thanks to more flexible financing choices.
Inventory levels, on the other hand, are expected to continue to decline in 2024, albeit at a slower pace than in 2023. In December, 1 million houses hit the market, a small increase from the previous year but still 11.5% lower than in November. This translates to a mere 3.2 months’ worth of supply, far below the 5-6 months considered a balanced market. So, while things are moving slightly in the right direction, getting a house might still be a competitive fight.
- Demand: The third major factor that influences home prices is the demand for housing. Demand, which surged in 2023 due to the pandemic-induced lifestyle changes, low mortgage rates, and pent-up demand from millennials, is expected to moderate in 2024, as the economy recovers, the pandemic subsides, and the population ages. Less demand will reduce the urgency and willingness of buyers to pay high prices for homes, which could also contribute to lower or stable home prices.
As mortgage rates go down after going up, homes become more affordable, but home shoppers lose some of the pressure they felt before. The demand for homes is less intense and there are many rental homes to choose from. This keeps home sales steady at low levels in 2024 and makes home prices drop a little, even though there are fewer homes for sale. Nevertheless, this is only a forecast, and various circumstances will determine the real market value.
Economic Considerations
The real estate market does not operate in isolation but is influenced by the broader economic factors that affect the income, spending, and borrowing of households and businesses.
It is forecasted that the economy may slow down a bit in 2024, and this could make mortgage rates go down even more, to 6.6% or less. Some homeowners who were not sure about selling may decide to sell, and this could make more homes available for sale. But there may still not be enough homes for sale, and some new buyers may have trouble affording them.
Strategies and Tips for Buying or Selling Properties in 2024
The real estate market in 2024 will provide opportunities and challenges to buyers and sellers. Market circumstances can favor one side or the other, or be more balanced and neutral, depending on the region, property type, and price range.
As a result, it is critical to have the appropriate techniques and suggestions for purchasing or selling a home or property in 2024, as well as to tailor them to your unique goals, finances, and schedules. Here are some of the best strategies and tips for buying or selling in 2024:
For Buyers:
- Do some research on the market trends, inventory levels, mortgage rates, and home prices in your desired area before you start home searching. It is best to consult with a local real estate agent or a lender to get more personalized and professional advice.
- Getting pre-approved for a mortgage is a smart move in any market, but especially in 2024, when the competition and the uncertainty may be high. A pre-approval letter shows that you are a serious and qualified buyer, and gives you an edge over other buyers who may not have one. It also helps you narrow down your budget and your options and saves you time and hassle in the closing process.
- The real estate market in 2024 may not be as active as in 2023, but it may still be difficult to find your perfect home at your ideal price. You may have to compromise on some of your preferences, such as the location, the size, the style, or the features of the home. You may also have to wait longer than expected to find the right property or close the deal. Therefore, be flexible and patient, and keep an open mind and a positive attitude.
- Negotiating a home purchase is an art and a science, and it requires a good understanding of the market conditions and the seller’s motivation. In 2024, the negotiation power may vary depending on the supply and demand of the homes, and the urgency and willingness of the sellers. Therefore, negotiate smartly, and use the data and the feedback you have gathered to make a reasonable and realistic offer.
For Sellers:
- Before you list your home for sale, make sure it is in its best condition and ready to impress the buyers. You can do some repairs, upgrades, or renovations to improve the functionality and the appearance of your home. You can also hire a professional home inspector, a contractor, or a stager to help you with these tasks or do them yourself with some online guides and tips.
- Pricing your home right is one of the most important factors that affect your home sale. If you price your home too high, you may scare away the buyers and lose interest and momentum. If you price your home too low, you may leave money on the table and lose the potential profit.
- Marketing your home effectively is another key factor that affects your home sale. You want to reach as many potential buyers as possible and showcase your home in the best possible light. You can use various channels, such as online platforms, social media, print media, or word-of-mouth, to advertise your home and generate leads. You can also hire a professional photographer, do video tours and staging, or open houses, to highlight your home and attract more attention.
Navigate the 2024 Market with Confidence
2024’s real estate market offers multiple opportunities for both buyers and sellers armed with the right knowledge and strategies.
It is important to be updated on the real estate trends, inventory, mortgage rates, and prices in your desired area. Don’t hesitate and coordinate with local agents and lenders – their pro insights are pure gold.
For investors seeking lucrative real estate opportunities, Guam has emerged as a hotspot. New markets are blossoming, offering diverse possibilities for property investment. If you’re considering adding real estate to your portfolio, explore what Guam has to offer.
Selling your property in Guam? Let Ellen’s Realty Guam guide you through the process with confidence and expertise. Our team has seen it all, from navigating picky buyers to maximizing your home’s appeal. We handle the paperwork, negotiations, and marketing, so you can focus on getting the best possible deal.
Don’t go it alone. Partner with us and navigate the market with confidence!