Last Updated on February 1, 2024
2024 is expected to be a better year all around for home buyers and sellers. More inventory, lower interest rates and more buyers are all on the table for the up-coming busy spring and summer home market. If you’re thinking of buying or selling in the coming months, here’s what to expect.
Interest rates: Thankfully, interest rates are on their way down from the peak we experienced in 2023. With most experts predicting mortgage interest rates will rest comfortably in the 6 percent range, this is likely to bring more buyers to the table and drive up competition.
Bidding wars: In 2023 and the last part of 2022, we experienced far less competition and bidding wars as rising interest rates priced many buyers out of the market. However, 2024 is expected to be a different ballgame, as falling interest rates should bring those same buyers back to the market.
The concessions sellers made over the last 18 months will likely be a thing of the past if interest rates and pent-up buying demand continue to work well for sellers. Buyers in this new market should plan accordingly and present their highest and best offer to position themselves well in a bidding war.
Competition: This year is predicted to bring more buyers to the market as buyers determined to wait until mortgage rates are lower will be happy with the dip in rates and realize they can’t wait forever. Pent-up buyer demand should lead to a good bit of competition and bidding wars.
This increased competition does not mean sellers can phone it in, though, as in a fast-paced market, homes that sit longer than others will stagnate. Sellers need to price their home with the help of an expert, taking care not to overprice it. It’s also crucial that sellers stage their home and present it in the best light possible in light of the increased competition we’re predicting this year.
Home prices: Good news on the housing appreciation front, as experts across the board predict price appreciation will get closer to normal levels next year. Research shows us that in October 2023, purchasing the typical home with a 30-year fixed-rate mortgage and 20% down payment required 39% of the typical household paycheck. Typically, this figure is closer to 21%, and in 2024, experts predict this to come down, dipping under 30% by the end of the year.
Locally, North & South Carolina saw some of the highest housing appreciation rates in the country since 2021, averaging 14% in the last two years. Here in the Carolinas, things will return to normal on the housing appreciation front, with experts predicting a modest average appreciation of around 5%.
More inventory: The big story here is that most sellers who have been sitting on the sidelines, unwilling to trade their ultra-low interest rate for a higher one will finally get off the sidelines and make their move this year, realizing they can’t wait forever. With most experts predicting rates will be lower this year in the 6-6.5% range, we’re expecting this will work to free up housing inventory.
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