As we bid farewell to one of the most challenging years for the housing market, marked by rock-bottom inventory and unprecedented mortgage rates, the burning question on everyone's mind is whether relief is on the horizon. The good news, according to Zillow® economists, is that 2024 is poised to bring about positive changes, offering a breath of fresh air for those looking to buy or sell in the coming year.
Home Buying Costs on the Horizon
After grappling with mortgage rates reaching heights not seen in the last two decades, buyers in 2024 can anticipate a glimmer of relief. While predicting mortgage rates remains uncertain, the decline in high inflation and the stabilization of home values—projected to fall only 0.2% in 2024—suggests a potential decrease in volatility. Coupled with a steady growth in wages, this could provide buyers with much-needed breathing room in terms of affordability.
More Options on the Market
Following a year of limited inventory, the housing market is poised to bounce back with an increase in the number of homes available for sale. Sellers are adjusting to higher mortgage interest rates, prompting a surge in listings. This surge not only expands options for buyers but also helps alleviate market competition, potentially preventing further price hikes.
The traditional fixer-upper is gaining appeal among buyers as higher home prices make flipping less lucrative. Buyers looking for a primary residence may face less competition for homes in need of renovation. Despite the potential cost savings, buyers should carefully weigh the lower purchase price against the expenses of necessary improvements.
Rise of DIY Home Improvements
As home prices and interest rates continue to challenge buyers, do-it-yourself (DIY) home improvements are gaining popularity. Homebuyers are opting to enhance their existing homes rather than move. This trend emphasizes the importance of community resources such as tool libraries and salvage businesses for homeowners looking to undertake DIY projects.
Trends in Home Design
Home design trends in 2024 focus on wellness and nostalgia, with sensory gardens, Murano glass chandeliers, painted murals, and cold plunge pools making appearances in listings. The brutalism design style, featuring elements like concrete floors, is making a comeback, and homes located near pickleball courts are increasingly touted as desirable.
Artificial Intelligence in Real Estate
Artificial intelligence (AI) is set to revolutionize the home buying and selling process, providing streamlined experiences for all involved parties. AI tools, such as Natural Language Search, are enhancing the home search process, while features like 3D Home Tours and interactive floor plans offer buyers a deeper understanding of properties. The role of AI is expanding, with innovations like the Zestimate capturing market trends and providing valuable insights.
In conclusion, 2024 holds promise for the real estate market, offering a respite from the challenges of the past year. Whether you're a buyer or seller, staying informed about these emerging trends will be key to navigating the evolving landscape of the housing market in the coming year. Lean on Melody Smith to help you navigate the 2024 real estate market.
Stay up to date on the latest real estate trends.
February 21, 2024
February 13, 2024
Melody Smith's 7th annual blood drive.
January 26, 2024
January 10, 2024
December 27, 2023
A Comprehensive Guide for Buyers and Sellers
December 11, 2023
The finest in business and best in the community.
November 9, 2023
A new law, Assembly Bill 1033 (AB 1033), is changing the game, offering Californians the opportunity to buy and sell them as condominiums.
November 1, 2023
October 26, 2023
Title pirates are criminals who exploit vulnerabilities in the real estate industry to deceive homeowners and make off with their properties.
You’ve got questions and we can’t wait to answer them.