The Market So Far in 2024
2023 was a challenging year for many buyers. Mortgage rates and residential real estate prices surged, and average monthly mortgage payments hit record levels. The good news is that the housing market is off to a good start in 2024 as consumers benefit from falling mortgage rates and more stable home prices. Monthly mortgage payments are down 14% from their record highs in October.
Most industry experts agree that the Federal Reserve is done with its rate-hiking that was designed to lower inflation. Policymakers kept the federal funds rate unchanged for a fourth straight meeting on January 31 and more rate cuts are in store for 2024.
For the best possible outcome in 2024, it is essential that the inventory of homes for sale increase considerably. Additional inventory would ease the upward pressure on home prices, leveling them off or at least helping them to settle somewhat. It would be advantageous if mortgage rates continue to cool off—they are holding below 7% so far in 2024.
Another positive note is that the home builder outlook, which had been on a downslide, is trending back up. New homes are luring some buyers who were frustrated with the lack of resale inventory. Sales of newly constructed single-family homes were up 8% in December from the month before and 4.4% annually, according to the latest U.S. Census Bureau and HUD data.
Below are some tips to prepare if you are planning to purchase or sell in 2024:
Tips for Buyers:
- Plan ahead so you can act fast when you find a property you want. You should meet with your lender to get pre-approved, gather required documents, and strengthen your credit score.
- Calculate how much your monthly payment would be—complete with taxes and insurance—and understand how this payment fits into your budget prior to making an offer.
- Check listings and prices regularly.
Tips for Sellers:
- Set realistic pricing by working with your real estate agent to learn about local pricing and comps. The right price will encourage buyer competition and help your home sell faster.
- Prepare your home for market by tackling fixes, sprucing up curb appeal, and doing a deep cleaning. Consider investing in new paint, window washing, and staging. Your agent can help guide you regarding what work will give you the best return.
Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 19 years. If you have a specific real estate question you wish to see addressed, contact Debbie at (916) 223-8144 or visit debbieaustinrealty.com.
