With mortgage rates on the rise and sky-high prices, it’s no surprise that potential homeowners are hesitant to jump into the market. But the good news is that experts are predicting a shift to a buyer’s market over the next few years, making it a great time for homebuyers to make a purchase.
To help you navigate this changing market, we’ve compiled 25 future real estate market predictions from expert housing market forecasters and authoritative sources like CoreLogic, NAR, and the Federal Reserve. Whether you’re looking to invest in rental property for cash flow or you’re a first-time homeowner, these predictions will arm you with the information you need to make smart decisions and stay ahead of the curve. Also read https://www.acompanythatbuyshouses.com/sell-my-house-fast-melissa-tx/
Tight Inventory Will Continue to Give Sellers the Upper Hand
Despite recent dips in sales, tight supply will continue to give sellers the upper hand. This is because there are more buyers than available homes, which keeps competition high and prices rising. Unless there is a sudden influx of new listings, this trend will likely continue for the rest of 2024.
The good news is that experts don’t expect a housing market crash similar to the one that took place in 2008. The current economic climate is much healthier, with steady job growth and low interest rates. Furthermore, lending standards have become stricter, reducing the risk of foreclosures and defaults.
Nonetheless, there are a few things that could cause a sudden drop in prices. A spike in mortgage rates would make it more expensive for people to borrow money, reducing demand and driving down prices. In addition, a massive influx of foreclosures could flood the market and push prices down.
However, most experts don’t think either of these factors will occur. Instead, they predict that home prices will continue to increase in the near term, but at a slower rate than in the past few years.
In fact, some experts predict that home prices will increase by only a single digit in 2024. This is because the economy will slow down and fewer people will be able to afford homes. The good news is that a low interest rate environment will incentivize more people to list their properties, leading to an increase in inventory and a buyer’s market.
With lower interest rates, it’s possible that we will see a return to a balanced housing market by 2028. This will likely happen as a result of more existing homeowners choosing to sell, and new construction catching up with demand. Of course, these trends will vary by region and may be impacted by unforeseen events.