Veena
Last Updated on July 9, 2024 by Team Experts
Around the country, sellers have been in this magic sweet spot because prices were high, there were buyers aplenty, and interest rates were incredibly low. However, like all things that are just too good to be true, it’s going to come to an end. The question is, when? It’s nice to have a game plan about the year ahead – especially in real estate. Top-rated realtors share their housing market predictions
Although we can’t pinpoint a specific date in the future when the market will change, HomeLight’s End of Year Report gives us a look at what factors will shape housing market. In an effort to help you prepare or just stay informed, we’re going to give you a brief rundown of those predictions.
Buyers include contingencies again
For the past year and a half, interested buyers go into a contract without the usual contingencies in place. They’d forego home inspections, appraisals, needing to sell their properties, and the like. They were that determined to buy the house!
Well, that’s starting to change and buyers are insisting on including contingencies to protect themselves from a potentially bad situation. They’re realizing that they’re spending a boatload of money and they want to make sure the property is at least worth the asking price (or the price they’re willing to pay).
Bidding wars aren’t so common
It wasn’t unusual for properties to receive multiple bids during the past 18 months. Many properties would receive so many, that bidding wars would break out! That trend is on the decline now and respondents say that even if a property receives multiple offers today, it’s nowhere near the amount they’d receive just a few months ago.
Inventory will replenish, but slowly
Although housing inventory still cannot keep up with demand in many markets, realtors are optimistic that it will improve, albeit slowly. One factor that could help with replenishing inventory is last-minute sellers who want to cash in while the market is still hot.
Another factor that could impact inventory is the effects of the foreclosure moratorium being lifted. The moratorium was lifted on a federal level, but we have yet to see the fallout. With that said, realtors have said they are seeing many properties go into pre-foreclosure but they are confident it isn’t going to result in a 2008-era crash.
Housing prices are on the decline
Up until now, housing prices have been through the roof, and sellers and their agents were prospering! Now only about 50% of realtors are singing the “We’re in the money!” because prices are declining.
Buyers use wealthy families, savings, or stock gains
The pandemic has thrown our lives out of whack in some significant ways, but perhaps one of the only good things to come from it was being able to save money (if you were still employed, unfortunately). You can’t spend money going out and doing things if everything is closed, right? 46% of realtors are seeing many new clients who are taking that saved recreational spending money and using it toward a down payment for a property.
Of course, buyers aren’t just using their frugal savings to buy. 45% of agents say they’re seeing clients ask their wealthy family members (or trust funds) to buy, and another 37% are seeing clients who’ve done well with the stock market use their gains to buy.
Housing market is still a mystery
Throughout life, we’re always going to be faced with tough decisions that need to be made; and, like with those tough decisions, research is crucial. These predictions are a good start, but they may not apply to your market. We can’t stress this enough, but you should always consult with a licensed real estate professional to gain insight regarding your local market. They’ll be able to shed some light on the trajectory of your local market and offer advice that’ll help you make the best decision for your situation, regardless of whether you’re buying or selling!
Read also: How to Market Your Rental Property Like a Professional Realtor
