2024 Real Estate Market Predictions: Why You Should Sell Now

Why 2024 Could Be A Dominate Year in Real Estate

The last three years, to say the least, things have been wild in the real estate market. From a fairly stable market pre-2020, we moved to see insane equity gains for owners due to manipulated low interest rates, which triggered millions of people to purchase and allowed them to afford more than they had ever been able to before.

More recently, when interest rates started rising, buyers lost buying power and many stepped away from the thought of home buying because of affordability. As the Federal Reserve continued to raise interest rates, homes began to sit on the market longer. With less and less buyers making transactions, sellers had to offer sweet deals to get their home sold (ie; concessions like closing costs, rate buy downs, etc).

2024 has started with continued rate decreases by the Federal Reserve, which means buyers are jumping back in and are quickly gaining back buying power. With this news and the projection of rates continuing to drop, I believe we are in for a strong market this year.

2024 Market Headwinds

Buyers who backed off last year when rates hit 7% to 8%, are now making jumps back into the market with interest rates teetering between 5% to 6%. (Remember: This is a healthy interest rate!)

We also have families who bought during the 2020-2021 market and have realized their home does not fit them well: they need more space, less space or simply the functionality is just not there. However, these families feel stuck because of a low interest rate (2% to 3%). As interest rates creep back to normal (5% to 6% is market average), these homeowners may decide to take the plunge and move. This provides two things for the housing market: 1) more homes to choose from for buyers as owners list their homes and 2) more buyers in general in the market.

In addition to the millions of young generational buyers entering the home buying scene, there are also millions of people who will buy and sell each year, regardless of market, due to situational factors (ie; baby boomers downsizing, divorce situations, family deaths and inheritance of properties, etc).

2024 Predictions

For sellers in 2024, I believe you will see less time on market than in 2023, and I believe offers will be stronger. Stronger offers means you will likely net more money on your sale, too. 

For buyers, home prices are staying fairly level for now. However, this could change as more buyers continue to enter the market, thus creating more competition. There are still lots of negotiations happening in your favor as buyers right now. There are great incentives with home buying programs as well for those who may need additional assistance. 

All in all, if you have been waiting to sell, this could be the year to cash out on that equity as we will likely need more inventory with the millions of buyers likely re-entering the home buying scene this year alongside decreased rates. The market is heating up, and this could be your chance!