What have we seen in 2023 and how does it inform our real estate predictions for 2024?
When you’ve been in the real estate investing industry for as long as we have, you start noticing trends.
2023 has been an interesting year for investors as we’ve faced exceptionally high interest rates. At times, this has been stressful, but how can we use this information to help us prepare for the next year of opportunities?
What Have We Seen in 2023?
High interest rates!
Currently, rates are between 7% to a little over 7% for people looking to buy an owner-occupied property with a 30-year fixed mortgage.
According to Realtor.com, we’re also facing a shortage of homes for sale. Although there is high interest in buying single-family homes, there’s a shortage in the market.
Affordability has also been a challenge for buyers and investors alike. All buyers need to afford and qualify for the mortgage in order to move forward.
All in all, it’s been a tough market for real estate. Smart investing has been more necessary than ever before.
Predicting 2024: A Shifting Market
Moving into 2024, we’re going to see even more repercussions from the pent up demand from 2023. People want to buy homes, and the market is going to get competitive.
So many young adults are living with friends or family out of necessity. Multi-family households are increasingly common in response to affordability concerns.
As these adults get older, the desire to live in their own space will only get stronger.
Election Year Impact
Even though the Fed isn’t tied to either Democrats or Republicans, there’s always pressure on them to make sure the American people feel good about the housing market.
Pay attention to how interest rates respond to election pressures.
The Fed has nearly reached their max which means lower rates are coming! And not just on housing; credit cards, student loans, etc. will all start seeing lower interest rates.
Although it’s tricky to pinpoint exactly how low the rates will drop, our real estate market predictions are confident that lower rates are coming.
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