The 2024 housing market has unlocked, bringing significant changes for both buyers and sellers. We all remember how the 2023 real estate market was essentially at a standstill, with limited inventory and high mortgage rates keeping everyone on the sidelines. But that’s no longer the case in 2024.
The Shift in the Market
According to the National Association of Realtors,
“…existing home sales surged by nearly 10% year-over-year in the first quarter of 2024.”
Chief Economist Lawrence Yun notes that the increase in housing supply is helping to meet market demand. This shift marks the beginning of a new normal in the housing market, which is driven by supply, demand, and interest rates.
Historically, an increase in inventory typically leads to a decrease in prices. However, the current market defies this trend. Despite the rise in inventory, prices continue to climb. This unusual scenario is due to the persistent high demand from buyers who had been waiting on the sidelines throughout 2023.
Rising Prices Despite Increased Inventory
In this new market, prices are up by about 6%, as there still aren’t enough homes to satisfy buyer demand. These buyers are now actively shopping, which keeps prices high. However, experts predict that we won’t see the dramatic surge in home prices that occurred post-pandemic in 2021. Instead, we are witnessing a more stabilized market, which is good news for both buyers and sellers.
Opportunities for Buyers and Sellers
If you’re considering listing your home, now is an excellent time to do so. The increased demand means your property could sell quickly and at a good price. For buyers, this is also a great time to enter the market. The stabilization of prices means you can find a home without the fear of rapidly escalating costs.
Bottom Line
The 2024 housing market offers a unique opportunity for both buyers and sellers. With increased inventory and stabilized prices, now is the time to make your move.