What's the Latest Housing Forecast?
As we move into the second half of 2024, many are wondering what the housing market will look like. Is now a good time to buy or sell? To answer this, we need to examine the key factors shaping the market: mortgage rates, inventory levels, and home prices.
#### Mortgage Rates
Mortgage rates have remained on the higher side throughout 2024. Despite earlier predictions suggesting that rates might dip into the 5% range, they have continued to hover in the mid to high six’s. However, experts remain hopeful that rates will decrease later in the year. This optimism offers some relief for those considering entering the market but are hesitant due to current rates.
#### Inventory Levels
Inventory levels remain lower than usual, with new listings at historic lows. According to Redfin’s Market Report, while new listings are up 7.7% from 2023, they are still below typical levels for this time of year. Many properties are lingering on the market for 30 days or longer without offers. This is often due to high-interest rates and homes not being priced correctly or needing repairs. In today’s market, most buyers are looking for properties that are move-in ready, avoiding the additional costs of repairs or renovations.
#### Home Prices
The good news for sellers is that buyers are still active and willing to pay premium prices for homes in good condition and desirable locations. Although home prices remain at record highs, the rapid pace of price increases has slowed. The inventory shortage is not as severe as in 2023, giving buyers more options and helping prevent overinflated prices.
So, is now a good time to buy or sell? The answer depends on your individual situation. Assessing your financial standing, housing needs, and long-term goals will help guide your decision.
This is Dave with The David Marshall Team of eXp Realty. If you would like more information on the housing market in your local area, please contact us for our client-based approach to service excellence.
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