01/11/2024
Knowing how unpredictable the 2023 real estate market was, you may be feeling skeptical about going into a new year. We on the other hand are excited for all of the new possibilities and investing opportunities that could be in store for 2024!
Let's delve into the SIX trends you as investors can expect to see in 2024, so that you can start planning your year accordingly!
BIG DEMAND, BIG RETURN 📈
Lawrence Yun, Chief Economist at NAR states, “Lack of supply is behind ongoing multiple offer scenarios on moderate- to mid-priced homes.”
This high demand is also helping to fuel the rise in home prices, which NAR predicts will increase from an average of $384,900 in 2023 to $395,000 in 2024 😱
STABILIZATION ⚖️
Interest rates are SLOWLY coming down and Fannie Mae predicts the average interest rate to be 6.5% for 2024. This doesn't necessarily mean a lot will change NOW, but you can expect a lot more buyers to enter the market towards the end of 2024 going into 2025.
NEW CONSTRUCTION 🏗️
The National Association of Home Builders predicts that single-family production will rise from an average of 744,000 units in 2023 to 925,000 in 2024. This move SHOULD help stabilize home prices.
MOTIVATION 🤑
Many people simply do not have the luxury of waiting to move until the market gets better and are migrating to new, more affordable places. Buyers are also motivated to move elsewhere due to remote work becoming such a normal part of life.
RELIABLE RENTAL 💰
While rent is slowly coming down across many regions, it will continue to be a good investment opportunity. With houses still being expensive, a lot of people are opting to rent vs buy right now.
CONFIDENCE 💪
Last but not least, according to the Coldwell Banker® 2023 International Consumer Survey, U.S. residents surprisingly say they are "optimistic about the state of the U.S. real estate market."
In fact, 80% of luxury consumers believe purchasing real estate in the United States is a safe investment!
