Homebuyer Opportunities in 2024
We know this past year has been difficult for homebuyers. If you’re someone who had started the process of searching for a home and then put your search on hold because the challenges in today’s market felt like too much to take on–you’re not alone in that! A Bright MLS study found that some of the top reasons buyers paused their search in late 2023 and early 2024 were:
- They couldn’t find anything in their price range
- They didn’t have any successful offers or had difficulty competing
- They couldn’t find the right home
If any of these sound like why you stopped looking, here’s what you need to know: the housing market is in a transition in the second half of 2024. Here’s four reasons why this may be your chance to jump back in!
1. The Supply of Homes for Sale IS Growing
One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. If you look at data from the National Association of Realtors (NAR), you’ll see how inventory has grown throughout 2024:
The graph shows the months’ supply of existing homes –homes that were previously lived in by another homeowner. The upward trend this year is clear! This increase means you have a better chance of finding a home that suits your needs and wants. And if the biggest reason you put off your home search was not finding the right home, this is a big relief!
2. There’s More New Home Construction
And if you still don’t see an existing home you like, another big opportunity lies in the rise of new home construction! Builders have worked to increase the supply of newly built homes this year and they’ve turned their attention to crafting smaller, more affordable homes based on what’s needed most in today’s market. This helps the long-standing issue of housing undersupply throughout the country and those smaller homes also offset some of the affordability challenges you’re feeling today.
According to data from the Census and NAR, one in three homes on the market is a newly build home:
So if you weren’t previously looking at newly built homes as part of your home search, you may have been cutting your pool of options by a third. Not to mention, some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home that fits their budget.
3. Less Buyer Competition
Mortgage rates are still hovering around 7%, so buyer demand isn’t as fierce as it once was. When you combine that with more housing supply, you have a better chance of avoiding an intense bidding war. Danielle Hale, Chief Economist at Realtor.com, highlights the positive trend for the second half of 2024, saying:
“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”
4. Home Prices Are Moderating
Home prices are also showing signs of moderation–and that’s a welcome shift after the rapid appreciation seen in recent years:
This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. But make no mistake, that doesn’t mean prices are falling –they’re just rising at a more normal pace. You can see this in the graph, the bars are still showing prices increasing, just not as dramatically as before. The average forecast for home price appreciation in 2024 is for positive growth around 3%-5%, which is more in line with historical norms. That means you are less likely to face the steep price increases we saw a few years ago.
Bottom line is if you’ve put your dream of homeownership on hold–the second half of 2024 may be your chance to jump back in! Give us a call today to talk about the opportunities you have in today’s market and how we can help! 206-590-2414