There’s no arguing this past year has been difficult for homebuyers. If you’ve started the process of searching for a home and put it on hold because the challenges in today’s market felt too overwhelming, you’re not alone. A Bright MLS study found 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 reasons sound familiar, here’s what you need to know: the housing market is transitioning in the second half of 2024. Here are 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 this year is the increase in the supply of homes for sale. According to the National Association of Realtors (NAR), inventory has grown throughout 2024.
This means you have a better chance of finding a home that suits your needs and preferences. If difficulty finding the right home was your main issue, this is a big relief.
2. There’s More New Home Construction
Builders have worked to increase the supply of newly built homes this year, focusing on smaller, more affordable homes to meet today’s market needs. One in three homes on the market is now a newly built home, according to data from the Census and NAR.
Some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to find a home within their budget. Talk to your agent about what builders have to offer in your area.
3. Less Buyer Competition
Mortgage rates are still hovering around 7%, so buyer demand isn’t as fierce as it once was. This, combined with more housing supply, means you have a better chance of avoiding intense bidding wars. Danielle Hale, Chief Economist at Realtor.com, says,
“Home shoppers who persist could see better conditions in the second half of the year.”
This creates a unique opportunity for you to find a home with less stress and potentially at a better price.
4. Home Prices Are Moderating
Home prices are showing signs of moderation after the rapid appreciation seen in recent years.
Supply is growing and demand is easing, so prices aren’t rising as fast. The average forecast for home price appreciation in 2024 is positive growth around 3% to 5%, which is more in line with historical norms. This means you are less likely to face the steep price increases we saw a few years ago.
The Opportunity in Front of You
If you’re ready and able to buy, you may find that the second half of 2024 is easier to navigate. Some of the biggest hurdles you’ve faced are getting better as time goes on. However, if you choose to wait, you risk increased competition and higher prices as more buyers recognize the shift in the market and as mortgage rates potentially decrease. Making a move now helps you take advantage of the current market conditions.
Bottom Line
If you’ve put your dream of homeownership on hold, the second half of 2024 may be your chance to jump back in. Let’s connect to talk more about the opportunities you have in today’s market.
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