Numerous real estate analysts have predicted that the spring of 2024 would prove fruitful for home buyers. Unfortunately, this turned out not to be the case.
Sales slowed down while mortgage rates and housing prices rose. That said, a greater amount of resale inventory infiltrated the housing market. As time progressed, his development gradually capped home prices.
Analysts are now left wondering how will the remainder of the year shake out.
Housing Market Forecast
Real estate professionals believe that the market will get better. However, the skies might not brighten right away.
These experts feel certain factors must occur. First, inflation must abate. High inflation often results in the Federal Reserve increasing the Federal Fund Rate. As a consequence, mortgage rates often increase.
Economic analysts expect the Fed to cut these rates but cannot specify or estimate a specific time when.
Will The Housing Market Recover?
The answer to this question hinges on certain notable issues.
First, more homes must be placed on the market. Larger quantities of properties available for purchase equate to a decrease in prices.
Moreover, mortgage rates must drop. Promising numbers have been reported in recent times. Through June and early July, the 30-year fixed rate interest rate declined to 6.75 percent. However, market analysts opine that the number needs to reduce to anywhere from four to five percent to create a dramatic market uptick.
When Will the Housing Inventory Improve?
Despite slight improvements in the resale market, too few homes are available to the public to positively impact the market.
Market observers feel that the problem will remain an issue until the lack of new home construction turns around, the demand for entry-level homes increases, and some owners demonstrate a willingness to exchange extremely low locked-in mortgage rates for slightly higher rates in higher-priced markets.
Tips for Buying or Selling Your Home
In spite of the sobering facts, buying or selling a home often proves challenging even during the best of economic times. Fortunately, however, you may overcome the present housing market struggles by adhering to certain proven suggestions offered by real estate industry professionals.
When selling your home, you might emphasize:
Knowing Your Budget
Do not always become fixated on a home’s price. Rather, you should center your attention on crucial topics such as knowing what you can afford.
Demonstrating Flexibility
You must show a certain degree of flexibility and compromise regarding your prospective home’s size and location. For example, you may need to accept a smaller home in your perfect location or move into a larger home a little further away from your intended destination.
Keeping Your Eye on the Local Market
You are encouraged to pay attention to your intended market’s inventory, as well as how quickly homes sell. Such action will keep you abreast of any developments and likely render the process easier.
Do Not Grow Discouraged
You should never allow yourself to become discouraged enough to make rash decisions. Understand that challenges will occur and if you establish a budget, be willing to compromise. Keep your eye on the market; a positive outcome will eventually follow.
Tips for Selling Your Home
Research Comparable Home Prices
Thorough research will ensure that you do not overprice your home. Putting forth a fair and honest listing price often expedites the sale process.
Keep Your House in Optimal Condition
Homes needing major repair and that fail to offer an aesthetically pleasing appearance will take longer to sell, regardless of market conditions. Make sure any needed repairs are made and that the outside looks neat and pretty.
Work With A Real Estate Agent
Real estate agents possess the connections needed to display your home to a wider group of prospective buyers.
Despite the numbers, economists do not believe that the housing market will crash in 2024. However, determining when a turnaround will occur is difficult. Therefore, if you wish to purchase or sell a home this year, you need to offer your own due diligence and engage in time-honored steps proven to yield positive results.
