The housing market has seen its ups and downs with rising prices, bidding wars, and low mortgage rates. As we move into the second half of 2024, the outlook is a blend of optimism and caution. Here’s what to expect:

Inventory on the Rise

Great news for buyers: inventory is up! Reports a 35.5% year-over-year increase in available homes as of June 1st, 2024. Affordable listings are particularly rising in the South. While this boosts options for buyers, a true market balance may take time.

Mortgage Rates: A Potential Turning Point?

Mortgage rates have fluctuated, hitting highs over 7% in May but dipping recently. The Federal Reserve’s upcoming meeting in June could bring a rate cut by fall. Even if rates drop to 6.5%, rising home prices might still challenge affordability.

Home Prices: Steady Yet Variable

While the rapid price increases have slowed, national home prices are still up over 4% from last year. A national price drop seems unlikely.

What This Means for You

The second half of 2024 is a time of opportunity. Buyers will find more options than last year, though affordability remains key. Staying informed about market trends and mortgage rates is crucial. Consulting a real estate professional can help navigate local market dynamics.

Regional Trends

    The Sun Belt: A hotspot for affordable listings and inventory, making it attractive for first-time buyers.

    The West: Slowing down, with high mortgage rates and prices deterring some buyers.

    The Northeast: Mixed, with coastal cities cooling down and suburbs seeing continued interest.

    The Midwest: Stable, with moderate inventory and muted price increases, offering a predictable market environment.

Key Considerations for Buyers and Sellers

For Buyers:

    Affordability First: Assess your budget and be flexible with location, size, or features.

    Patience Pays: Avoid rushing; research and make informed decisions.

    Pre-Approval Power: Strengthen your offer and maximize your purchasing power.

    Local Expertise: Work with a knowledgeable real estate agent.

For Sellers:

    Strategic Pricing: Set competitive prices based on current trends.

    Highlight Strengths: Showcase your property’s unique features.

    Be Flexible: Consider negotiating and offering incentives.

    Stay Informed: Keep up with market conditions and trends.

A Look Ahead: Opportunities and Trends

While the housing market will adjust, unforeseen events or trends could influence it. Stay aware of economic changes, climate impacts, policy shifts, and technological advancements to make informed decisions.

Conclusion

The second half of 2024 offers both challenges and opportunities. By staying updated on market trends, assessing your needs, and seeking professional guidance, you can navigate this dynamic market and make sound decisions for your future.

Don’t hesitate to reach out to McCarthy + Moe Group for expert guidance and support in navigating the dynamic real estate landscape.

Source: noradarealestate.com