summer 2024 real estate market outlook
The housing market is an ever-evolving landscape, influenced by various factors such as economic conditions, demographic shifts, and buyer/seller behaviors. As we look ahead to the summer, we'll analyze what's next for the real estate market, especially with all the new commission changes on the horizon. In this blog, we delve into some of the predictions and insights offered by experts in the field, to gain a glimpse into the possible trajectory of the housing market in the coming months.
1. high demand, low inventory.
Demand for homes has continued to increase; however, high mortgage rates and lower inventory have caused existing-home sales to decline. Experts predict that sales may increase slightly, but not significantly, as mortgage rates have not decreased much. Summer is a hot time to buy or sell, as many want to get that done before the school year starts. The weather is nicer, allowing for more showings and open houses. We expect to see more activity during these upcoming warmer days.
2. continued high prices.
Home prices are at an all-time high and will likely continue unless more listings go on the market or there is a surge in new home constructions. These prices are unlikely to drop due to the shortage of inventory. There are still more buyers than sellers, so demand remains high, giving sellers the upper hand. As summer is a busier season in real estate, we don't expect to see any decline in prices.
3. high interest rates and low mortgage affordability.
Mortgage rates continue to stay high, going above 7% in May. However, there is still demand in the market due to lower inventory, causing some home sales to still sell over the asking price - which is good news for sellers. Home inventory will likely not increase significant until mortgage rates see a larger decline. For buyers this summer, this means navigating the market will requires careful financial planning. With high prices and rates, it’s essential to be prepared in order to avoid overextending financially. Working with an experienced real estate agent can provide valuable guidance and negotiation support.
4. potential shifts with industry changes.
The shifts in commissions structures are predicted to go into place in August, where buyers would directly pay their agent's commission. This shift could influence home prices and market dynamics, but its full impact remains uncertain. As new changes take place, the real estate market may see some shifts.
While predicting the exact trajectory of the housing market is a challenging task, industry experts offer valuable insights that help us anticipate potential trends and shifts. As we look ahead, continued buyer demand, tight inventory, and increasing home prices are some key factors to consider. It's essential for prospective buyers and sellers to stay informed, work with knowledgeable professionals, and adapt to market conditions in order to navigate the ever-changing landscape of the housing market successfully.
Contact us for a free market analysis.
Source: bankrate.com
Posted by arhome realty on
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