Real Estate in 2024

Buying and selling real estate has always seemed to be a daunting task. Whether you’re a first-time home buyer or you’re already a homeowner selling your home and purchasing a new home; there are a lot of moving parts. Account for high interest rates, homes priced at top dollar and over asking offers; the market is more competitive than ever.

For most of 2023 rates were at 7% and even 8% for buyers with weaker credit scores … How do you compete when interest rates are already putting you over your monthly budget for a mortgage payment?

Luckily, in December of 2023 the Feds met and penciled in at least three rate cuts in 2024.

So, what does this mean for real estate buyers and sellers in 2024? In simplest terms, the market is about to explode - buyers and sellers should be ready for it.

When interest rates fall, all the home buyers who have been waiting to buy, are about to come out of the woodworks - meaning, we may see similarities to the 2021 market.

Buyers; You want to hear the words ‘under contract’ and ‘your closing date is’; now with rates closer to 5% the market is likely to become competitive again; if you are currently pre-approved, you’re already setting yourself up for success. If you are not pre-approved yet, I highly recommend you reach out to a mortgage lender and start the pre-approval process.

The last thing a potential buyer wants is to see their dream home pop up on the market and not be pre-approved yet, while other pre-approved buyers will scoop that house up before they even had a chance to get pre-approved.

Here’s the thing - if you’re pre-approved, and waiting for rates to drop but can make the higher mortgage payment work for a little while - do it, put your highest and best offer in, go under contract, and close on your home before the market explodes again. Remember, ‘Date the rate, marry the house.’

You can always refinance when rates drop again and beat out the buyer rush that can be expected as rates continue to drop - most lenders are waiving refinance fees - just be sure to ask your lender.

Sellers; I predict we will see multiple offers situations again and above asking offers, especially if buyers flood the market with the anticipated fall of interest rates. So, if you’re thinking of selling, reach out to a realtor sooner than later. Your realtor will talk to you about your home’s market value and what preparation your home needs, to get top dollar before your home hits the market.

Give yourself the time to prepare for the sale, build a marketing plan, take the listing photos and list knowing you’ve checked all the boxes.

You don’t want to be the one caught saying ‘I missed the boat’ as the market is sure to make a comeback.