Real estate expert and “Million Dollar Listing” star Samantha DeBianchi has the following predictions for the housing market in 2024.
DeBianchi says we’ll see:
• More Inventory: While we won’t see a huge amount of inventory, we should certainly see more than in prior years. Sellers that felt “locked in” to their current mortgage rate which prevented them from wanting to sell and buy are now readjusting themselves to the idea that mortgage rates will most likely stay within the 6%-7% range. With sellers’ newfound comfort level as to what to expect when they buy after they sell, we should see more inventory enter the market. Inventory will still remain well below demand and, because of this, buyers should understand that when a home is priced correctly, it will still be a competitive market.
• New home construction on the rise: Despite a shortage of resales, expect new single-home construction to rise. While prices for these homes tend to be more expensive than resales (depending on the area they are in) buyers won’t have to come out of pocket to renovate or make major adjustments. Home builders are also building with more thought and consideration to post-COVID trends such as adding dens to use as offices, gyms and nurseries.
• Insignificant uptick in home prices: In general, home prices nationwide will see a mild increase from last year; however, this can vary from city to city. Certain parts of the Midwest and upstate New York will see significant growth attracting investors, along with some parts of Southern California.
• Sellers making bigger moves: As rates stayed relatively high last year, experts saw a trend of some sellers making bigger moves — not just to a different neighborhood down the street, but to an entirely different state. Sellers wanted to capture the full effect of the equity and profit they’ve made and realized that, in order to make this happen, they needed to move to an entirely different environment. For example, many sellers moved from South Florida to properties in the Carolinas where their dollar went further. This trend may continue through 2024.
• Mortgage rates should finally drop: 30-year rates should remain steady between 6-7% possibly dropping slightly later in the year as the election comes down to the wire. Sellers are aware of buyers’ sensitivities toward rates and some of them are providing creative seller financing as options with competitive interest rates and terms. In the new home market, some home builders are offering rate “buy-downs” which buyers can take advantage of. Lastly, many parents of millennials have been either gifting money or providing attractive financing terms for their children —something that may continue through 2024.
• More buyers working with listing agents but experienced buyers agents still capturing business: Due to the recent NAR lawsuits, more buyers are questioning the need for a real estate agent. Buyers and sellers think they can save money doing it themselves but the reality is, this is rarely the case. An experienced and knowledgeable buyer’s agent can run comparables, be “in-the-know” about off-market properties and guide the buyer through the entire transaction to avoid costly issues.
More from DeBianchi at https://www.debianchi.com/.
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