The past several years have been unusual in many ways, including the real estate market’s success during a pandemic and a persistent seller’s market – even in the face of rising interest rates.

Real Estate Predictions for 2024

However, with this recent short-term sales plateau – and interest rates exceeding what most homebuyers feel comfortable with – it makes sense for prospective home sellers and buyers to ask about real estate predictions for 2024.

General Market Predictions 

First, we’ll start with general market predictions, after which we’ll continue with information specific to home sellers and buyers.

Some general real estate predictions for the upcoming year include:

• No signs of a crash. There is no prediction that a crash is anywhere on the horizon, so that’s a relief for anyone hoping to buy or sell in 2024.
  
• Slight decreases in interest rates. While interest rates are expected to go down, the decrease isn’t predicted to be dramatic and will come nowhere close to pre-hike record-low rates.
  
• Reduced real estate inventory. We expect to see reduced real estate inventory due to interest rates that make mortgage payments more challenging for middle- and lower-income buyers.

Let’s look at how these predictions and other housing market trends affect sellers and buyers.

Real Estate Tips for Future Sellers

Real estate sellers are in a great position because fewer houses on the market means more competition despite rising interest rates.

If you’re getting ready to sell your Central Florida home, we recommend the following: 

• Scheduling a meeting with a local agent. Now more than ever, you must align with the right real estate agency. You’re looking for brokers and agents with ample real estate experience (15+ to ensure they’ve weathered market shifts in the past).
  
• Getting serious about staging your home. While rising rates may be stalling the buyer’s market and housing prices a bit, there is no doubt that “the best-presented home wins.” By getting serious about staging your home, it will stand out from others with similar structural features, speeding up the offer and sales process when you’re ready to list.
  
• Begin planning for beneficial upgrades. If your home hasn’t been updated in the past 10 years, now’s the time to consider beneficial upgrades that will increase its sales value and expedite its sale.
  
• Be prepared to wait a little longer. Anytime interest rates go up, houses sit a little longer because prospective buyers have to do more to qualify for loans and to prepare for making higher mortgages than they originally planned. Your home may stay on the market longer than it would have two years ago, but lower inventory means they’re still moving; be patient!

Again, connecting with the right real estate agent to sell your home ensures you take the proper steps to put yourself in a prime position when the right buyers come calling.

Real Estate Tips for Future Buyers

We know the consistently elevated interest rates haven’t been fun for buyers, but that’s no reason to put off buying a home.

• Get your loan pre-approval and lender paperwork in order. Once interest rates start to go down, the market will be flooded with buyers, and that makes for a more competitive buyers market. Connecting with a reputable lender now (we can help you with that!) means you’ll have the necessary pre-approval documents – and related lender paperwork – in order when you tour the house of your dreams.
  
• Don’t forget about the tax benefits of homeownership. When comparing what you pay to rent and what you’d pay to buy, don’t forget about the backend benefits of purchasing a home, like tax deductions and equity gains. While current clients mourn the interest rates they could have had three years ago, we like to remind them that higher interest rates benefit you at tax time.
  
• Remember: Home prices go up when rates go down. Finally, hesitating to buy now because of higher interest rates may not pay off in the long term. When interest rates decrease and more buyers enter the market, housing prices inevitably increase. And, since the feds don’t expect rates to go anywhere near the record lows of the earlier 2020s, you’re better off buying your home for less now and refinancing later to achieve lower monthly payments across a 30-year loan term.
  
• Ask sellers to consider covering closing costs. Now that houses are for sale for more days on average than a couple of years ago, sellers may be inclined to offer incentives. While they may not jump at offers below their asking price, many are willing to cover all or a portion of the escrow closing costs, which can save you thousands of dollars.

Get Ready to Buy or Sell With Southern Exclusive Real Estate

Southern Exclusive Real Estate is here to help you prepare to make informed, responsible real estate decisions no matter what the 2024 market may bring. Contact us to schedule your consultation by calling 386-279-7244.