There’s no arguing this past year has been difficult for homebuyers - and if you’re someone who has started the process of searching for a home, maybe you put your search on hold because the challenges in today’s market felt like too much to tackle. You’re not alone in that. A Bright MLS study found some of the top reasons buyers paused their search in late 2023 and early 2024 were:
They couldn’t find anything in their price range
They didn’t have any successful offers or had difficulty competing
They couldn’t find the right home
If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the second half of 2024. Here are four reasons why this may be your chance to jump back in.
1. The Supply of Homes for Sale Is Growing
One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. A recent survey by the National Association of Realtors (NAR) shows the months’ supply of existing homes – homes that were previously lived in by another homeowner is increasing. The upward trend this year is clear. This increase means buyers have a better chance of finding a home that suits their needs and preferences.
2. There’s More New Home Construction
Another big opportunity lies in the rise of new home construction. Builders have worked to increase the supply of newly built homes this year. They’ve turned their attention to crafting smaller, more affordable homes based on what’s most needed in today’s market. This helps address the long-standing issue of housing undersupply throughout the country, and those smaller homes also offset some of the affordability challenges many people are feeling today.
According to data from the Census and NAR, one in three homes on the market is a newly built home. Considering newly built homes can open the home search for buyer by about 33% by these values. Not to mention, some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home that fits their budget. If buying new construciton is something you are considering, have that conversation with your real estate agent. They are well-versed with the builders in the area an your agent’s expertise on builder reputations, contracts, and more will help you weigh your options.
3. Less Buyer Competition
Mortgage rates are still hovering around 7%, so buyer demand isn’t as fierce as it once was. The combination of higher rates and increased housing supply, there is a better chance of avoiding an intense bidding war. Danielle Hale, Chief Economist at Realtor.com, highlights the positive trend for the latter half of 2024, saying:
“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”
This creates a unique opportunity for buyers to find a home they want to buy with less stress and at a potentially better price.
4. Home Prices Are Moderating
Home prices are also showing signs of moderation – and that’s a welcome shift after the rapid appreciation seen in recent years. This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. However, make no mistake that doesn’t mean prices are falling – they’re just rising at a more normal pace. The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. That moderation means that buyers are less likely to face the steep price increases we saw a few years ago.
The Opportunity in Front of You
If you’re ready and able to buy, you may find that the second half of 2024 is a bit easier to navigate. There are still challenges, but some of the biggest hurdles you’ve faced are getting better as time wears on.
On the other hand, you could choose to wait. But if you do, here’s the risk you run. As more buyers recognize the shift in the market, competition may grow again. On a similar note, if mortgage rates do come down (as forecasts say), more buyers may flood back into the market. So, making a move now helps you take advantage of the current market conditions and get ahead of those other buyers.
Hey Inland Empire, I’m Candice Newman! I’ve had the incredible fortune of being born and raised in this amazing community, and I couldn’t imagine living anywhere else. I currently live in Alta Loma with my husband, Jonathan, our son, Trevor, and our dog, Ruger! I’m a real estate agent with a passion for finding new places to explore in the Foothill Communities. When I'm not selling homes, you can find me cheering my son on at his baseball games, exercising, spending time in our local mountains, heading to the lake, cooking, or watching the Dodgers slay the Giants (I was born and raised an Angels fan, but the Dodgers have taken over the household!). I'll never have enough Mexican food and Italian food in my life. I’m looking forward to connecting with you soon! See you around town! Candice.Newman.Realty@gmail.com | (909) 367-3280 DRE: 01924842
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