Domestic migration, remote work, and soaring interest rates have created some thrilling ups and downs in residential real estate over the last few years. Whether you are buying or selling, moving or investing, it is important to know the factors shaping the market, and how they impact your transaction. Buckle up because we're diving into the twists and turns of the housing rollercoaster in this blog exploring 2024 real estate trends and insights!
Guess what's making homes more important than ever? Yup, you guessed it – remote work! According to Forbes, the 9-to-5 grind is evolving, and people are setting their sights on homes that double as cozy offices. About 13% of full-time employees work from home, while 28% work in a hybrid model. This shift is driving up demand, especially in areas that promise better quality of life than metropolitan hubs, creating a bit of a housing frenzy.
Hold onto your hats – home prices are on the rise! Inflation is flexing its muscles, making houses a hot commodity. Forecasters expect a 4-7% increase in home prices this year. Forbes also reports a suburban migration trend, with folks seeking that perfect blend of city access and suburban tranquility. It's like everyone's looking for that Goldilocks zone of housing bliss.
Thinking about snagging your dream home? Get ready to roll up your sleeves. CNBC reports that there's about three months of supply in the existing home market – that's half of what's considered balanced. New construction offers more choices, but it comes at a cost. High demand and low supply mean buyers are in for a challenging hunt.
Feeling a bit queasy? You're not alone. According to Bankrate, mortgage rates are soaring like never before, hitting an average of 7.95 percent on a 30-year fixed loan. That's a hefty ride for anyone looking to dive into the market. The good news? Rates have started to come down. As we enter 2024, rates are forecast by CBS News to continue to drop, possibly as low as 6% by 2025. But remember, every 1% drop in mortgage rates will add another 5 million buyers to the residential market, making it a more competitive market.
So, what's the game plan in this wild ride? Brace for impact – the US economy is slowly recovering from a mild recession that started in late 2023, with commercial real estate investment taking a hit. But hey, every rollercoaster has its ups and downs, right? CBRE suggests that the dip in 2023 will be followed by a potential rise in 2024.
In summary, the U.S. housing market is like a roller coaster – thrilling, unpredictable, and sometimes a bit stomach-churning. Whether you're a buyer, seller, or just a curious spectator, keeping an eye on these trends is key to staying ahead of the market. So, fasten your seatbelts, folks – the 2024 ride is just getting started. And remember, Waltz is here to help you navigate the ups and downs of real estate investing.
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