Navigating the 2024 Housing Market
The housing market in 2024 is still presenting challenges for both buyers and sellers. The same issues faced in 2023 persist, including high-interest rates, exorbitant home prices, and a limited supply of homes. The scarcity of affordable options is causing a decrease in housing sales volume while low supplies continue to keep home prices at a premium.
Experts at Bankrate.com reveal that mortgage interest rates spiked in October 2023, reaching an all-time high of 8.01%, last seen in 2000. Since then, rates have come down, but there is no indication of a housing market downturn so long as lending standards remain stringent and there isn’t a sufficient supply of homes to meet the demand. Goldman Sachs Research predicts that 30-year mortgage rates will open at 7.6% in 2024 and end at 7.1%. While home prices are expected to increase by 2% in 2023, they are expected to slow down to 1.9% in 2024 and then rise to 2.8% in 2025. If mortgage interest rates continue to ease, there is a likelihood that demand for homes will reignite despite higher purchase prices.
The Federal Reserve’s aggressive handling of inflation by raising overnight borrowing rates to banks has had a positive impact, and further rate hikes seem unlikely as the numbers approach the Fed’s target of 2% inflation.
For those who are squeezed out of the market, there is help available. FHA-guaranteed loans require as little as 3.5% down, and many state and local governments have increased programs for first-time and lower-income homebuyers. Lenders are offering grants, down payment assistance programs, and mortgages with no closing costs. The National Association of REALTORS® also offers the Housing Opportunity Program, which provides resources for homebuyers.
Sources
Blog Disclaimer
Click to Read
Disclaimer: Important Information Regarding Our Real Estate Blog
Last Updated: [Date]12/17/2023
The information provided on Demetria.com is intended for general informational purposes only. The content on this blog is not intended to be a substitute for professional advice, and it should not be relied upon as such. Readers are encouraged to seek professional guidance for specific real estate, legal, financial, or related matters.
Accuracy of Information:
While we strive to provide accurate and up-to-date information, the real estate industry is dynamic, and laws and regulations can change. The content on this blog may not always reflect the most current developments or market conditions. We do not guarantee the accuracy, completeness, or suitability of the information presented, and users should verify any details independently.
Personal Responsibility:
Readers are advised to use their discretion and exercise due diligence before making any decisions based on the information provided in our blog. Real estate transactions involve significant financial decisions, and individual circumstances may vary. It is important to consult with qualified professionals, such as real estate agents, financial advisors, or legal counsel, to tailor advice to your specific situation. Check your sources, understand we aren’t offering investment, retirement or reale state advice. Get an agent, get a lawyer to help.
Third-Party Links:
Our blog may contain links to third-party websites or resources. These links are provided for convenience and informational purposes only. We do not endorse or control the content of these external sites, and we are not responsible for their accuracy, legality, or content. Visiting these links is at the user’s own risk.
No Endorsement:
Mention of specific companies, products, or services in our blog does not constitute an endorsement. The inclusion of such references is for informational purposes only, and readers should conduct their own research and assessments before engaging with any products or services mentioned.
Copyright and Reproduction:
The content, images, and materials on this blog are the property of Demetria.com unless otherwise stated. Reproduction, distribution, or use of any content without permission is strictly prohibited.
Updates and Changes:
We reserve the right to update, modify, or change the content of this blog at any time without prior notice. It is the responsibility of the user to stay informed of any changes by regularly reviewing this disclaimer.
By using Demetria.com, you agree to the terms and conditions outlined in this disclaimer. If you have any questions or concerns, please contact us at demetria@demetriaclark.com
Recent Comments