I don’t have a crystal ball, but I do have a pulse on the real estate industry in our area. Given my experience and insights, I’d like to make some predictions about our market in 2024. Let’s see how I do!
Anticipated Rise in Home Sales: Home sales are expected to climb early in 2024. With rates substantially dropping below highs and continued strong demand in our area, I foresee an increase in home sales compared to 2023.
Stable to Slightly Increasing Prices: Prices are likely to remain stable, with a possibility of a slight increase. I do not anticipate a decline for two main reasons. Firstly, our area still faces low inventory levels. Although a substantial increase in inventory might alter this scenario, we are far from transitioning to a buyer’s market. Secondly, the price declines observed in some markets across the country are primarily in areas that have become extremely unaffordable. While our prices may seem elevated to long-time residents, we still boast one of the most affordable housing markets in the country.
Continued Demand for Ranch Homes: The demand for ranch homes and single-level living is expected to remain strong. Many baby boomers residing in homes that no longer suit their needs are seeking downsizing options. The limited availability of such properties over the past few years suggests that this trend will persist.
Challenges for Older Condominium Complexes: Older condominium complexes may face difficulties with increased association dues due to insurance challenges. Conversations with several past clients reveal substantial increases in assessments and monthly dues due to insurance companies dropping coverage or requiring major updates.
Preference for Updated Homes: Homes that are completely updated will be highly sought after. This trend, prevalent in recent years, indicates that buyers are willing to pay a premium for turnkey properties. In 2024, homes requiring TLC and offering potential equity will be considered a better value.
Struggles for Agents Without Value: Agents who do not provide value may find it challenging in this market. Following the lowest recorded year for home sales since 1993, the real estate landscape continues to pose difficulties for agents. Compared to the frenzied market of 2020-2022, 2024 is anticipated to be another tough year, possibly leading to more agents leaving the industry.
Let’s circle back in 2025 and evaluate the accuracy of these predictions! Feel free to reply and share your real estate predictions for the year. I would love to hear your insights.