As this post is being written, the Mortgage Maestro team is gearing up for the start of the 2024 home buying season. Spring is six weeks away. When it arrives, so will a flurry of home buying activity. We are expecting to see some market shifts this year, though most of them probably won’t be significant.
Whether you are looking to buy that first home, move up the property ladder, or sell the family house so that you and your spouse can downsize, this could be your year. Mortgage Maestro will be here doing what we have done for years: helping buyers secure conventional home loans, VA home loans, and mortgages for first-time buyers.
We are looking forward to what 2024 brings. What are your thoughts? In the meantime, here are some home buying trends worth keeping an eye on in 2024.
1. Improvements Rather Than Purchases
We start with a trend mentioned by Realtor Magazine’s Barbara Ballinger in a recent post: more home improvements and fewer purchases. Ballinger believes that market conditions will lead more current homeowners to stay put in 2024, choosing to spend their money on home improvements rather than looking to move up the property ladder. It is hard to argue against her.
What is working against homeowners right now? For starters, rates on 30-year fixed mortgages are higher than current homeowners want to entertain. There is also the problem of limited inventory. Until those two things do a complete turnaround, it is expected that fewer homeowners will look to upgrade. This is good news for first-time buyers who face less competition for a tighter inventory.
2. General Market Stability
Although some economists are hinting at a possible housing crash in 2024, plenty of real estate experts don’t think that this is going to happen. Forbes Advisor’s experts are convinced that 2024 will see a generally stable market with very little chance of a crash. They note that interest rates are starting to inch down, which is likely to encourage more activity in the existing home sector. And if that’s the case, a crash is fairly unlikely.
3. Inventory Will Remain Low
With more homeowners deciding to stay put and builders unable to keep up with demand, 2024 should continue the previous used trend of low supply. The good news is that we are seeing a trend toward more luxury housing designed for older Americans looking to purchase that final house for retirement. Should the trend continue, there could be a slight bump in inventory for first-time buyers looking for that family home.
4. Building for Specialized Needs
Going back to Realtor Magazine and the idea of older Americans preferring luxury housing, the trend of building new homes for specialized needs seems to be emerging. Builders are looking at ways to design housing units that account for what homeowners need as they age, thereby allowing them to age in place rather than being put into assisted living arrangements.
As explained with the previous trend, this could ultimately be good news for first-time buyers looking to purchase existing homes. As more aging Americans move into spaces designed especially for them, their family homes should become available.
Does all of this mean a better year for buyers in 2024? We cannot really say. By all accounts, inventory will remain limited. As for interest rates, while they are ticking down, they are not going to fall to the same levels we saw just a few years ago. That’s why it’s more important than ever for buyers to work with mortgage brokers capable of finding them the best deals on the market. Call us, schedule a free consultation, or apply through our site today.
