Why 2024 is the Perfect Time to Buy a Home?
In the tumultuous world of real estate, predicting the perfect time to buy a home can seem like an impossible task. After a rollercoaster ride in 2023, many are left wondering “Is 2024 finally the year to make that leap into homeownership?” The answer is a resounding yes! 2024 brings with it a wave of optimism and opportunity for prospective homeowners. Here’s why:
- Relatively Low Interest Rates
“While mortgage rates have seen an uptick, they are still historically low,” remarks Skylar Olsen, Zillow’s chief economist. Despite recent increases, rates remain favorable compared to previous decades. The recent trend of falling rates, with the average 30-year fixed-rate mortgage dropping to 6.61% in December, suggests a positive trajectory for buyers. Lawrence Yun, chief economist at the National Association of Realtors (NAR), shares this sentiment, forecasting an average rate of 6.3% in 2024. With the Federal Reserve potentially cutting rates in response to economic conditions, now is the time to seize the opportunity and secure a favorable mortgage.
- Regaining Negotiation Leverage
“The wild seller’s market of the past two years is cooling slightly,” notes Yun. As inventory levels increase, buyers may find themselves with more negotiating power. Sellers, once accustomed to multiple offers over asking price, may now be willing to entertain negotiations on various fronts, from price adjustments to contingencies.
- A Less Competitive Environment
Gone are the days of intense bidding wars and waived inspections. With inventory levels gradually rising, buyers can breathe a sigh of relief. The hyper-competitive landscape of recent years is giving way to a more balanced market, offering buyers a chance to secure their dream home without the frenzy.
- Room for Appreciation
“While some areas may have seen minor price drops, overall home values have remained resilient,” states Yun. After the unprecedented events of 2020-2022, the market is poised for a more sustainable appreciation trajectory. Purchasing now means locking in a favorable price before potential value surges resume.
- Buying beats renting still
Even with higher rates and rising prices, buying real estate continues to make better financial sense over the long run compared to renting the same property in an expensive market. Penciling in your monthly housing costs may be similar or slightly higher by buying, but mortgage builds equity while paying rent does not. Despite any short term uncertainty, owning comes out on top fairly quickly in many areas, especially when thinking 5-10 years ahead.
- Improved Affordability
“With mortgage rates on a downward trend and increased inventory, affordability is on the rise,” explains Olsen. As more homeowners list their properties, prices are stabilizing, making homeownership attainable for a broader demographic. With careful planning, owning a home becomes a realistic goal for millions of Americans.
- Projected Increase in Sales
“With favorable market conditions, sales of existing homes are expected to rise in 2024,” predicts Yun. As inventory expands and mortgage rates remain manageable, more buyers will enter the market, driving sales volume upwards. This surge in activity signifies a renewed confidence in the housing market and an ideal environment for buyers.
In conclusion, 2024 presents a golden opportunity for aspiring homeowners. With low interest rates, increased negotiating power, and a more balanced market, now is the time to make your move. Don’t let this chance slip away—take the leap into homeownership and secure your future today!
Reach out to me, your trusted real estate agent and broker (210) 418-0067 – Start your journey towards homeownership… Your dream home awaits!
