Optimism Grows in the Real Estate Market
The real estate forecast for 2024 has shifted to a more optimistic perspective, and experts look at key patterns that affect the real estate market. AP News says, “Despite high interest rates and prices, the nation's economy unexpectedly grew by 3.3% from October to December.”
As we consider the impact of these attributes coming into play with our boosting economy, many characteristics like favorable interest rates and increased inventory impact consumers as they seek to return to the market, especially across residential and commercial real estate.
NAR Chief Economist Lawrence Yun predicted in December 2023 that interest rates would decrease from 8% to 6.5% in 2024. This prediction in the reduction of interest rates will provide potential buyers with increased buying power and lead to an increase in inventory as sellers plan on selling their homes. Additionally, builders are adding inventory to the marketplace, further boosting the available options for homebuyers.
The increase in inventory presents a favorable environment for those seeking homes and presents opportunities for real estate professionals to assist these homebuyers.
It is no surprise that 2023 was a challenging year for the real estate industry, but there are reports of business picking up in 2024. According to Dr. Elliot Eisenberg, he explains that the U.S. economy is growing well above expectations and the dismal 0.7% in 2022. He emphasizes that the consumers are the main factor contributing to this increase by spending, charging, borrowing, and buying now and paying later.
According to AP News, “ The latest data shows that GDP has grown at an annual pace of 2% or more for the sixth consecutive quarter. This growth is primarily driven by consumers, who account for approximately 70% of the total economy.”
This is a key indicator of positive opportunities for the real estate industry. Now, more than ever, it is crucial to prepare for these changes. As real estate professionals, you have access to the largest and most reliable library of information, like BeachesMLS, to use to your advantage to stay informed about trending news that will impact your local real estate market. Lawrence offers valuable insights by analyzing the 10-year treasury yield, which serves as a benchmark for residential mortgage rates and commercial real estate borrowing rates.
With more favorable interest rates and an increase in housing inventory, experts foresee an optimistic year ahead as buyers and sellers return to the market. These are just a few ample opportunities presented that will help buyers cross the line from start to finish.
By BeachesMLS Staff
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