BUYERS: What Does the Latter of 2024 Look Like for Buyers?

The 2nd Half is Looking Bright for Buyers: Unlocking Homebuyers Opportunities in 2024

The past year has presented significant challenges for prospective homebuyers. Many individuals who began their home search only to pause their efforts have expressed similar sentiments regarding the complexities of the current market. A study conducted by Bright MLS highlights that key factors contributing to the cessation of searches in late 2023 and early 2024 included difficulties in locating properties within budget, obstacles in making successful offers, and challenges in finding the ideal home.

If any of these reasons strike a chord with your situation, it's crucial to recognize that the housing market is shifting in the latter half of 2024. Here are four strong reasons why now might be the perfect time to rekindle your search.

1. The Supply of Homes for Sale Is Growing

One significant market trend this year is the clear rise in the months' supply of homes available for sale. As reported by the National Association of Realtors (NAR), the supply has increased from 3 months in January to 4.6 months in August, suggesting a continued upward trend for the remainder of the year.

This increase in supply boosts the chances of finding a home that meets your needs and preferences. For individuals who delayed their home search due to difficulty in locating the perfect property, this change offers considerable relief.

2. There’s More New Home Construction

The growing landscape of new home construction offers a valuable opportunity for potential homebuyers who have not yet found the right existing property. In response to this demand, builders are increasing the availability of newly built homes, particularly focusing on smaller, more affordable options that meet current market needs. This strategic change not only tackles the ongoing issue of housing shortages across the country but also helps to reduce some of the financial hurdles to homeownership that many face today.

By excluding newly constructed homes from your search, you may have significantly narrowed your choices. Additionally, some builders are incentivizing buyers with initiatives like reduced mortgage rates to help make home purchases more budget-friendly.

It is wise to discuss local builders' offerings with your real estate agent. Their expertise in evaluating builder reliability, navigating contracts, and providing crucial insights will be key in effectively assessing the alternatives available to you.

3. Less Buyer Competition

Currently, mortgage rates are declining, with today's rate hovering around 5.6%. This has led to a surge in buyer demand; however, many buyers remain cautious, anticipating even lower rates. The Federal Reserve announced on Wednesday that it is reducing interest rates for the first time in four years. So, how much further will mortgage rates decrease from this point?

“Not by much, according to economists.”

Additionally, the increase in housing supply is contributing to a lower likelihood of competitive bidding wars. Danielle Hale, the Chief Economist at Realtor.com, points out this encouraging trend for the latter half of 2024:

“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”

This presents a distinctive opportunity for you to acquire a home of your choice with reduced stress and potentially at a more favorable price.

4. Home Prices Are Moderating

Current trends indicate that home prices are moderating, marking a welcome change after the rapid increases seen in recent years. This adjustment is largely due to the balance between supply and demand. With supply on the rise and demand declining, prices are no longer skyrocketing as they once did. It's essential to understand that this moderation does not mean prices are falling; instead, they are increasing at a steadier pace. The accompanying graph illustrates this trend, showing prices rising, though at a more gradual rate than before.

Looking ahead to 2024, projections for home price appreciation forecast a growth rate of about 3% to 5%, which is more in line with historical averages. This tempered growth suggests that the dramatic price hikes of the past are unlikely to repeat, providing a more stable environment for potential buyers.

5. The Opportunity in Front of You

If you are ready and in a position to make a purchase, navigating the latter part of 2024 could become easier. Although challenges remain, many of the significant hurdles you've faced are slowly showing signs of improvement.

On the other hand, choosing to postpone your decision comes with its own set of risks. With buyers becoming more market-savvy, competition is likely to ramp up again. Additionally, if mortgage rates drop as anticipated, a spike in buyer activity is expected. Therefore, acting now allows you to take advantage of the current market conditions and maintain a competitive edge.

Moral of the Story

If you've delayed your dream of homeownership, the latter half of 2024 could offer a great chance to revisit this goal. Think about reaching out to a real estate agent to delve deeper into the current market opportunities. Feel free to call or text me NOW at (404) 547-9378, or click the button below to schedule a consultation.

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