As we begin a new year, are you wondering what—if any changes—could be heading our way in terms of real estate? Will the national forecast match our local market? To see where the trends are headed, let’s look at four real estate predictions for 2024.
Average mortgage rates may begin to drop slightly.
Technically, mortgage rates are one of the big wildcards for the upcoming year. But, for now, indicators point to mortgage rates edging down toward 6.8 percent and possibly to 6.5 percent by the end of 2024.
Much of what happens with both interest rates and mortgage rates, for instance, centers on the assumption that inflation will continue to decrease.
Home prices are expected to dip.
Throughout the past two years, home prices have continued to increase at a fairly steady rate. In 2023, there was a brief period where home prices evened out before bumping back up with an increase in activity.
But as we enter 2024, Realtor.com’s forecast predicts about a 1.7 percent drop year-over-year in existing home median prices in some parts of the country. However, locally in Lee County, Auburn-Opelika, Lake Martin and surrounding areas, data shows home values will remain steady for the foreseeable future.
Home sales will remain steady.
Next on the list of real estate predictions for 2024 is that, overall, the number of homes sold is expected to stay about the same. Experts predict home sales to increase by about 0.1 percent this year, totaling about 4.07 million, which is about the same number of total homes sold in 2023.
Nationally, existing home inventory will remain low.
A look at the real state forecast predicts home inventory in most parts of the country will remain low, in spite of stiff competition from new construction. Even as builders begin to catch up, the number of homes for sale on the market is expected to drop by 14 percent year-over-year in 2024.
However, based on our own local real estate trends, inventory in East Alabama continued to grow in 2023. So, our own real estate prediction for 2024 in terms of local inventory remains hopeful that buyers will continue to have plenty of choices in the new year!
Summary
The best part about predictions is that they are unpredictable. And the best part about real estate is that there is no perfect time—just the time that’s perfect for you. Are you ready to start searching for your next home? Do you want to add your home to our local inventory? Either way, Ryan Roberts is ready to help! Connect with Ryan to get started. And, in the meantime, keep reading our blogs for more industry insights.
