Let’s be honest: accurately predicting the real estate market’s twists and turns in 2024 would mean a gold mine for any homebuyer or real estate investor. By a long shot, real estate is the safest, most bullet-proof investment you can imagine. Though it might depreciate slightly over time, its worth will never decline drastically. So, your investments will forever be in good hands.
For this reason, if we could foresee its future, we would become millionaires overnight. Based on conservative valuation, we can only offer you a guideline about how buying a home in 2024 changes. So, join us on this fascinating journey to discover what surprises the American real estate market may bring this time!
Summary:
- Important aspects to consider before buying a home in 2024
- Reasonable strategies for homebuyers in 2024
- What’s the deal with mortgage rates in 2024?
- Should buyers keep submitting competitive offers in 2024?
- Play for keeps, or try your luck at house flipping?
Important aspects to consider before buying a home in 2024
The COVID-19 pandemic, the swift but passing recovery, growing mortgage rates, sky-rocketing property prices, inflation, and near-recession. We know the drill because we’ve been facing this reality on a daily basis for quite some years now. The US real estate market has encountered a severe plight in recent years. The question, however, boils down to one simple thing. Will buying a home in 2024 differ from financing a property in 2023?
First-home buyers, veteran and rookie real estate investors, and impatient sellers will still have to bear the burden of the past to some degree. No one should expect radical changes or improvement from one day to the next!
Generally speaking, the American housing market will still suffer from unpredictable rising rates. The housing shortage is still acute, while the price of building materials keeps rising. Inflation won’t enable incredible drops in property prices. Thus, according to the general consensus, the median home sale price will remain mostly unchanged in 2024.
However, there’s a light at the end of the tunnel!
Let’s combine theory with practice!
Does purchasing a home in 2024 figure high on your to-do list? Before you dive deep into meticulous housing market predictions for 2024, Forbes forecasts, Inman tech news, or The Real Deal content, we advise you to contact the real estate agents near you.
Ultimately, they can provide the most reliable and topical housing information, neighborhood specs, and affordable property prices. Besides a long list of benefits of working with these experts, working with local agents will ensure you have all the details you need to make an informed decision.
Reasonable strategies for homebuyers in 2024
Let’s put the theory and reasonable predictions into practice and see the essential guidelines you should follow if you’re all set about buying a home in 2024!
Getting pre-approved for a mortgage never ceases to be the top priority.
Buying a home anytime 101: before you start your home search, ensure a first-grade pre-approval for a mortgage. This will give you a concept of what you can afford. Plus, it will make you a more attractive buyer to sellers.
Keep your eyes peeled on mortgage rates!
Mortgage rates fluctuate; there’s no way you can influence or predict them. Thus, always keep a sharp eye on them (we recommend Lending Tree for daily updates)! Locking in a rate at the right time can save you thousands over the life of your loan.
Go house-hunting and explore different locations!
Home prices vary widely by location. For instance, there’s a substantial discrepancy between suburbs and downtown. Expand your search to areas you may have yet considered, looking at places where your dollar goes further. You’d be surprised how many potential properties for sale you can locate by doing a little field work or by joining social media communities with similar topics!
Be ready to compromise!
We live in a world of housing shortages and high prices. This unfortunate reality trims your possibilities. Therefore, adopting flexibility is vital. You may have to give up on your expectations and reach a compromise on certain features or the location to find a home within your budget.
Research first-time buyer programs!
Several programs assist first-time homebuyers, including down payment assistance and favorable loan terms. We suggest you look into Federal First-Time Homebuyer Incentives (FHA loans), state-specific programs, and local initiatives and grants!
Vote for new constructions!
Newly constructed homes can be an excellent way to bypass fearsome bidding wars for existing homes. Why should you do this? Because you can lock in a price before the home is complete.
Keep your savings in reserve!
Unexpected costs arise during the home buying process. The proper savings account can cover these potential expenses and so much more.
Embrace patience!
Finding and buying a home in 2024 may take longer than expected in the current market. But the tide is slowly turning in your favor. Patience and thorough market investigation will be your best allies against frustration. And don’t rush into any impulse buying! Instead, make a casual offer and see if your bait catches big fish!
What’s the deal with mortgage rates in 2024?
At the end of 2023, the prevailing principle was that mortgage rates were sky-high and that buying an asset might mean committing financial suicide. Forget this outdated view! Mortgage rates indeed peaked near 8 percent in late 2023. However, we witnessed a steep decline shortly, settling at the mid-6 percent range toward the end of Q4 2023. In a word, rates are volatile.
This slight rate retreat is encouraging. Yet, market forecasts suggest a modest increase might follow due to recent global inflation trends. Despite this, the likelihood of reaching the previous year’s peak rates seems low. We expect mortgage rates to hold their ground, rising to 7 percent the most (worst-case scenario). We know it’s not particularly low but sufficiently moderate to sway home buying decisions positively. Reduced rates will do the trick, contributing to the housing market’s healthy revival.
We suggest embracing the present rate landscape. At the same time, we caution our readers that holding out for the historic lows could result in missed opportunities. Bear in mind, though! The mid-2 percent from the pandemic-era won’t likely return!
Should buyers keep submitting competitive offers in 2024?
Recent years have been marked by seller’s markets nationwide. Multiple offers on homes were an everyday phenomenon. For this reason, homebuyers felt pressure to showcase top-dollar offers. Will this go on in 2024?
Well-considered and lower offers could be enough. The still persisting scarcity of housing inventory often led sellers to expect and receive multiple offers (sometimes, even above the listing price). However, we must consider that sales during inflation fell to a record-breaking low point in 28 years (as of Q4 2023)!
Therefore, competitive offers are no longer the status quo. Bidding wars are momentarily a thing of the past. Buyers now have the freedom to present serious, yet not the highest, offers. If you plan on buying a home in 2024, even an offer that doesn’t break the bank could still win you the prize!
The dynamic market is back on track!
Once, home sellers had the upper hand. Things have changed – residential and property real estate buyers have regained pole position. In 2023, buyers brave enough to deal with daunting rates found themselves in less crowded buying fields. Many regions became a buyer’s market as the supply overtook the demand for housing.
Buyers could negotiate more freely. However, competition could intensify in a blink of an eye as rates possibly decrease further into 2024. And that’s the ideal segue to our next point!
Buy right away or wait with your offer?
“If you’re smitten with a house, you’d better act fast.” Would you subscribe to this idea? However, we’d assume a more cautious approach if we were in your shoes. Instead, why don’t you give the seller a ‘soft offer’? During the buying frenzy between 2020-2022, you had to move at lightning speed. There’s a new game plan in 2024!
Throw a casual offer out there! Nothing too serious or spectacular, just to check if the seller bites. Picture purchasing a home in 2024, like see-deep fishing! You must see if there’s any interest before you go all in.
Play for keeps, or try your luck at house flipping?
Would you buy, flip, and make a quick buck in the process? In other words, do you believe house flipping will still be hot in 2024? If so, you’d better think again! The wise move now is to consider your home your nest egg!
Flipping houses was all the rage, but it’s not the cash cow it used to be. Various analysts now advise us that smart money is playing the long game. Settle down, make memories, and let your investment grow. After all, good things come to those who wait.
Conclusion
In 2024, the American Dream of homeownership continues to evolve. As a matter of fact, the present condition of the US real estate market drives our thoughts to Heller’s evergreen masterpiece, Catch 22. Sellers can’t sell because of the exorbitant asset prices. At the same time, buyers can’t afford to purchase real estate due to mortgage rates and high property values. The deficient housing supply also plays against buyers.
However, things will change in 2024. Instead of a radical housing market correction, we foresee mild improvements. For instance, more and more seller’s markets will transform into buyer’s markets. This translates to sellers being willing to negotiate. Secondly, lower mortgage rates (which hopefully will stay away from wild fluctuations) will positively influence the buyers’ buying appetite.
I personally think 2024 will be an exciting year in real estate! I’m looking forward to sinking my teeth into market analysis. If I were a homebuyer, I would start by polishing my credit and building my creditworthiness to get a head start. Then, I would scout all neighborhoods I’m interested in and casually throw in an offer to see what happens. Who knows? I might get lucky. Why wouldn’t you?
