Here’s what buyers and sellers need to know about 2024’s housing market.

Curious about the real estate market? We receive questions about 2024’s housing market all the time, and we’re here to answer them today. There are four crucial aspects of the real estate market that you need to know about for next year:

1. Inventory. The persistent issue of low inventory isn’t going anywhere, influenced by builders who exited the industry during the Great Recession over a decade ago. While people are building more homes now, it’s going to take a while for inventory to catch up to demand. Consequently, competition for homebuyers in the spring market is expected to remain high.

2. Home values. Partly due to the scarcity of inventory, home values are projected to remain high. Sellers are anticipated to receive high prices for their properties, fueled by the ongoing low inventory.

“Interest rates will likely stabilize around 6.5%.””

3. Interest rates. The uncertainty surrounding higher interest rates is likely to stabilize or even decrease slightly in 2024. This prediction is influenced by the upcoming election year, where a strong economy is a shared goal among candidates. The historical average for a 30-year fixed mortgage is around 6.5%, and as long as the Federal Reserve maintains rates in that range, a story of a strong economy and a healthy market can be maintained.

4. Days on market. For potential home sellers, understanding the average days on the market is crucial. In a balanced market, an average of 30 to 60 days is considered normal. The market has transitioned from an extremely abnormal state, and maintaining a range of around 30 to 60 days will signify a balanced and typical summer or spring market.

If you have questions about how your property might perform or wish to discuss the optimal time to sell or buy to capitalize on market conditions, feel free to call us at 651-998-9829 to schedule a complimentary, no-obligation strategy session. We'll provide tips and insights to help you get ahead in the market and make the most of current conditions. We look forward to hearing from you!