Recent news articles and a report from the National Association of Realtors (NAR) offer interesting insights into what we can expect for the real estate market in 2024. While it’s still early to predict with certainty, there are some key points worth considering.
“The real estate market is ever-evolving, influenced by economic policies and buyer sentiment.”
1. Interest rate fluctuations. The market is adjusting to higher interest rates. In the last few months, rates have been fluctuating, and this instability affects buyer behavior. However, there’s growing acceptance of the current interest rate environment among consumers.
2. Economic indicators. Positive signs in inflation, with a decrease reported recently, and an increase in unemployment figures, suggest that the Federal Reserve’s policy of raising interest rates is having its intended effect. Despite this, the Fed has indicated a commitment to maintaining higher rates for an extended period.
3. Predictions for 2024. NAR forecasts a 15% increase in resale property sales for 2024. This suggests that buyers are becoming acclimatized to the current interest rates and might not wait for a decrease. However, it’s uncertain whether the Fed will reduce rates in the next year.
4. Timing your purchase. The winter months, November through February, are traditionally slower for real estate. To avoid potential multiple offer situations, consider purchasing during this period. If rates change and drop, we might see a resurgence in competitive bidding come March.
The real estate market is ever-evolving, influenced by economic policies and buyer sentiment. For those considering a purchase, now might be an opportune time, especially to avoid potential competition in the spring. If you have questions or need guidance in navigating the market, don’t hesitate to reach out for a discussion.