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Housing Market in 2024: What You Can Expect
Being a homeowner isn’t always what it’s cracked up to be.
Some repairs and maintenance cost a lot of money and time. Plus, if you need to move for a new employment opportunity or other reasons, it isn’t as easy as finishing a lease.
There may be times when selling a house fast is the best option. For instance, perhaps you’re making a change and need to leave now or you’ve received an older property as an inheritance.
You should know the state of the housing market in 2024 before you sell. After all, it can affect how quickly you can close on the sale. Here are the most recent housing market predictions.
Predictions for the Housing Market in 2024
The predicted housing market crash of 2023 never happened. Expert forecasters feared a crash after prices fell following the pandemic. The good news is that it never happened.
Last May, home prices were just 1% lower than the peak they hit in 2022.
So, what about 2024 home prices?
Home Prices Should Continue to Rise
Research experts from Zillow, Freddie Mac, and the National Association of Realtors are predicting rising home prices in 2024.
The reason is that there is still a far greater demand for housing than the current supply. The number of renters and home buyers exceeds the housing that’s available.
Despite President Biden’s visions for lowering housing costs and boosting supply, many obstacles still exist. Properties can’t be built fast enough to keep up with demand. As a result, home prices are still expected to rise.
How much price growth can you expect? Well, according to Zillow economists, a 4.9% increase by August 2024.
Keep in mind that these predictions can change as we approach the new year. In fact, Zillow originally predicted a 6.5% increase before adjusting their expected outcome.
The Construction of More Entry-Level Homes
What are entry-level homes? These properties, also known as starter homes, are usually smaller and more affordable for first-time buyers. Most people buy entry-level houses with the intention to eventually upgrade to a bigger place once they have the funds to do so.
Starter homes are smaller properties built on smaller lots. Therefore, it keeps construction costs low and means these houses can go up on the market for less.
Another prediction for next year is a rise in the construction of these starter homes. Currently, the projection is a 6% increase over last year.
However, despite the increase, it still isn’t enough to meet the current demand for housing.
The State of Mortgage Rates in 2024
Mortgage rates have hit a record high. We’ve already seen a fixed 30-year mortgage skyrocket to the highest rate in more than 20 years. The result is that many potential buyers have been priced out of the market.
According to Freddie Mac, the rate for that fixed 30-year mortgage is over 7%. As monthly payments rise, home buyers have to look for smaller and cheaper properties.
Again, previous predictions expected a decline in mortgage rates. That’s one prediction that didn’t come true.
So, what about mortgage rates for 2024?
Here’s what some of the experts are saying:
- Fannie May – Mortgage rates will average 6.3% in 2024
- Wells Fargo – Rates will dip below 6% in the second quarter
- Mortgage Bankers Association – Rates will fall to 5% in the fourth quarter
- National Association of Realtors – Rates will decline to 6% in 2024
The reason mortgage rates are expected to remain high is due to the actions of the Federal Reserve, inflation, and current economic growth.
Mortgage rates will rise or fall depending on the fluctuations in the US economy and as a response to the global economy.
Advice for Selling a Home in 2024
“Should I list my home for sale or should I wait?” This is a question that many property owners ask themselves as they evaluate the current market conditions.
Factors to consider include the rising mortgage rates, the current economic uncertainty, and your goals for the sale.
Despite what many first-time homebuyers might think, experts say that volatility in the market can be a good opportunity. Buyers can always refinance when the time is right.
If you’re trying to sell your Memphis home, that’s a good sign for you. Here’s some of our advice for getting the most out of the sale and walking away happy.
Determine the Value of the Property
You need to know how much the home is worth right now and how much you’re willing to invest in upgrades (if anything at all).
Real estate agents know the market well and can help you sell your home for more money. The downside to this approach is that you’ll have to pay for fees and commissions.
If you’re selling a house, you generally pay the commission to the buyer’s agent and your listing agent. Depending on your location and the price of the home, that can be a significant amount of money.
In any case, you should work with a professional or do your research to get a better idea of the fair market value of your property.
Think About Selling As-Is
If you don’t have the time or money for a traditional sale, consider selling your house for cash.
If your home isn’t worth as much as you’d like, you have a few options. You can invest in improvements that will add more value or you can sell it as-is.
Let’s cover both options.
If you want to invest in upgrades, look for changes that will have the biggest return on your investment. A minor bathroom remodel has an average return of 102% while investing in landscaping has an ROI of 100%.
People spend a lot of time in the bathroom and the kitchen, which is why these two areas often pay off so well. Even simple upgrades to improve the curb appeal can help you get more for your home.
Minor upgrades, such as resurfacing cabinets or adding a fresh coat of paint, don’t cost much and yet have a significant impact on the look of a room.
But what if you don’t have the time or money to spend on upgrades?
You can benefit from selling your house for cash in as-is condition. You’ll get a fair price for the property and you can close the deal much faster than you would through a traditional sale.
Stage the Home
Are you looking for a speedy sale? You can sell your Memphis property quickly if you strategically stage it.
Staging involves decorating your home and highlighting its best features. It can help buyers envision themselves in the property more than by walking through an empty building. Staging also gives them a better idea of scale, so they can picture their furniture in each room.
You have a few options for staging. There’s the traditional way that uses real furniture and decor, or the digital way. You can stage it yourself or hire someone to help.
If you do it yourself, you can use your furniture or rent furnishings for the showings. Generally, neutral colors and styles that appeal to the most buyers will benefit you best.
If you don’t consider yourself an interior design expert, you may want to hire someone to help. Home staging companies will set up every room in your house, including your patio and outdoor areas.
Virtual staging is another choice that’s rising in popularity. It’s an affordable way to make the most of the space you have without worrying about the hassle of renting furniture.
When you have a home virtually staged, you can send professional photos to the company and have them add furniture and decor. They may also walk through your home and take the pictures themselves.
Focus on Strategic Marketing
Although we’re still in a seller’s market, you must focus on strategic marketing to get the best deal for your property and sell it as fast as possible.
So, what does strategic property marketing mean?
It’s quite simple. If you’re going the traditional route, the process consists of researching and outlining goals for the sale. A listing agent then comes up with a plan to highlight key features of the property, advertise the sale, set up open houses, etc.
Selling a house without a real estate agent, such as For Sale By Owner (FSBO), means you’ll have to do this work on your own.
If you’ve sold a house before, you may feel comfortable handling this responsibility. However, we don’t recommend it if you’ve never sold a house.
Again, another choice is to sell your house for cash and skip much of the process. It’s the fastest and most straightforward way to sell a home.
Sell Your House for Cash
As you can see, the housing market in 2024 will still favor sellers. Between rising home prices and steady demand, next year is an opportune time to sell.
Do you need to sell your Tennessee home fast? Are you looking for a way to skip the hassle of traditional home sales?
Here at We Buy Houses Memphis, we promise we’ll give you a fair price for your property and you won’t have to worry about hidden fees. Contact us to learn more about the process and get started.
