4 Most Unexpected Housing Market Trends for 2024

I’m a Local Real Estate Agent: Here Are the 4 Most Unexpected Housing Market Trends for 2024

[Introduction] Hey there, real estate enthusiasts! Welcome back to my page. Today, we're diving into some exciting insights that might just change the way you think about the housing market in 2024. I'm Mehdi, a local real estate agent with years of experience, and I've gathered some of the most unexpected trends for the upcoming year. Let's jump right in!

1. Tight Supply and High Demand Will Still Define the Market More So If Rates the supply shortage we've seen in 2023 will continue to shape the market in 2024. With low-interest rates acting like golden handcuffs, many potential sellers are reluctant to part with their homes, contributing to the scarcity of available properties. I believe that even if the government offers relief by lowering interest rates, we might see a surge in buyer demand alongside persistently low inventory and equity. So, get ready for a possible influx of buyers and a continued inventory challenge.

2. Reluctant Sellers Will Get Creative I anticipate that sellers bound by "golden handcuffs" who have secured these low-interest mortgages might be hesitant to sell their homes and move because they would lose the benefit of the favorable interest rate if they were to take out a new mortgage for a different property, might explore creative solutions like wrap-around mortgages. These arrangements could allow homeowners to hold onto their current low-interest-rate loans while financing a new purchase at a higher interest rate. the rise of "unintended landlords," where homeowners with existing low-rate loans lease their properties while using the rental income to cover higher mortgage rates on new purchases.

3. Expensive Loans and Inflated Seller Expectations Will Increase Days on Market Due to the higher costs of borrowing (expensive loans) and sellers expecting higher prices for their properties (inflated expectations), homes might stay listed for sale for more extended periods (increase in days on the market) as buyers become more cautious and selective in their purchases. rising interest rates are making it harder for buyers to afford homes they might have purchased a few years ago. Additionally, seller psychology comes into play — sellers often base their expectations on recent neighbor sales, potentially leading to higher asking prices and longer listing times. This trend challenges the assumption that high demand always equals quick sales.

4. You’ll See Fewer Agents as a Tough Market Weeds Out the Pretenders] Remember the days when everyone wanted a piece of the real estate pie? as the real estate market becomes more difficult, some agents who are not well-equipped to handle the challenges and complexities will leave the industry, resulting in a smaller pool of genuinely committed agents capable of navigating the tough market conditions. [Conclusion] And there you have it, folks — the four most unexpected housing market trends for 2024. This year promises to be full of surprises, from supply challenges to creative solutions, and from longer listing times to a potential shift in the agent landscape. Remember to stay informed and adaptable in this ever-evolving real estate landscape. Thanks for tuning in, and I'll catch you in the next blog!