Life since 2020 has been a roller coaster for many reasons, and the real estate market has been no exception. If you’ve bought or sold a house over the last few years, you know that timing has been critical to getting the best deal or making the most profit possible.
If you’re considering moving in 2024, you may feel uncertain of what to expect and have many questions: What’s going on with interest rates? Can I get a fair price for my house? Will I be able to find something in my price range? Let’s look at some real estate trends we expect to see in 2024.
Over the past few years, we’ve seen a roller coaster of changes. The interest rates dropped to record lows, then climbed back up. Hot markets, like Tampa Bay, have seen persistent shortages, although recently, there has been better inventory. Sellers and developers scrambled to catch up to demand, and a climbing interest rate helped quell the tidal wave of buyers. So what’s next? Will the market finally even out? What should you do if you want to buy or sell in the new year? Let’s take a look!
Over the past few years, we have seen a tumultuous housing market as interest rates plummeted to an all-time low in January 2021 and gradually climbed to the highest rates since 2002. Many people who bought homes with those very low rates have felt reluctant to move in the past year since it would mean trading in their lower interest rate for a higher one. These buyers might catch a small break this year. The Federal Reserve has signaled that they may lower interest rates in 2024. Rates likely won’t return to the historic lows we saw a few years ago, but they may dip slightly, so if you’ve been waiting to make your next move, get ready.
If rates decrease and you wish to enter the market, you’ll also have increased buying power. You may be able to pay a higher sale price with more wiggle room in your budget.
Over the past year, there have not been enough houses to keep up with demand. If you live in Tampa Bay, you know people have been rapidly moving to the area, competing for homes against would-be first-time home buyers and families looking to upgrade. The lack of inventory has held higher sale prices steady in our market. Recently, interest rate hikes have increased a home’s days on the market, giving buyers more options and bargaining power.
In the new year, we expect this trend to continue. Inventory will likely stay on the low side, but if a prospective buyer finds a house they like, they should be able to pay a fair price.
If you decided not to buy last year because of the interest rates or higher home prices, 2024 might offer you a more favorable market. The best thing you can do is get all your eggs in a basket now in case the right opportunity comes. With interest rates possibly decreasing this year, you’ll want to lock in your rate as soon as you find the perfect home.
Get ready to buy by doing the following:
On the flip side, if you’ve been considering selling your home in 2024, don’t be intimidated by the slower sales rate. Although the market is becoming more balanced, we’re still ultimately in a sellers’ market, and sellers should receive a fair price for their homes.
If you’re hoping to sell your house in 2024, make sure to do the following:
Whether you’re looking to sell or buy a home in the Tampa Bay Area, the housing market is bound to be tricky to navigate in 2024. Contact my team today for personalized advice about the house you hope to buy or sell this year. My team will walk you through every step with an exceptional VIP experience.