It’s amazing to believe that 2023 is already coming to an end. There were many things for us to enjoy and celebrate this year. However, it was a somewhat forgettable year from a real estate perspective. It’s no secret it was a challenging market with such high mortgage rates throughout most of the year and low housing inventory. The good news is there may be some brighter projections to look forward to in 2024.
Thank You and Happy Holidays!
But before we get into that, we wanted to take this opportunity to wish everyone a very happy holiday season. This is the time of year to share gratitude and express our heartfelt thanks to everyone who has impacted our lives and business in these past few crazy years. We love what we do because we are able to meet so many wonderful people and help them make the most of their home buying and/or selling opportunities.
Thank you to our loyal clients, our incredible real estate team, everyone at Keller Williams Real Estate, our vendor partners, and everyone in the local communities we serve throughout Southeastern Pennsylvania and Northern Delaware. We can’t help but feel grateful for the people this career has brought into our lives!
2023 Real Estate Market in Review
Looking back on 2023, it was a very interesting year despite the challenges. We learned a lot and were able to apply our years of knowledge when helping our clients make the right real estate decisions. Mortgage rates soared while housing inventory remained low. Sellers had to start adjusting their expectations more this year when it came to selling prices and days on market. Yet, many transactions still happened. Home buyers who wanted to make their moves were able to find the right financial solutions in this tricky market. Home sellers who were ready to move on still enjoyed relatively favorable market conditions because of the low inventory and reduced competition. People were still buying and selling—just not quite as many as the previous years after the pandemic.
Real Estate Projections for 2024
This shift was expected as the market self-corrected from the pandemic and post-pandemic real estate frenzies. Now, we can look forward to 2024 and see what the economists are predicting for the housing market. It should be a better year for buyers as more sellers are expected to enter the market.
Zillow released a forecast in November predicting that housing inventory will go up in 2024. Mortgage rates may come down some, but the high rates will be sticking around for the foreseeable future. More homeowners are accepting this reality. They will decide to move forward with plans to sell, even if that means considering price reductions. With slightly higher housing supply and more flexible sellers, buyers should find more agreeable options. Buying a home will remain expensive, but the industry experts are expecting a “breather year” with slightly more favorable buyer conditions than 2023.
“We’re not going to see a major breakthrough in the logjam that has been the housing market over the last year or so, but 2024 will be a baby step in the right direction,” says Realtor.com Chief Economist Danielle Hale. “It’s going to stop getting worse.”
“While still presenting challenges, the market will be better for buyers, with more homes to choose from and improved affordability,” adds Zillow Chief Economist Skylar Olsen. “Many will continue to look toward rentals, and given renter demographics, single-family rental demand in particular will be strong. Recent deliveries should keep rent growth down, and concessions high in that market, too. This is our breather year.”
Planning Your Move in 2024
If you are planning to buy or sell a home in 2024, it’s never too soon to start planning. Contact The Cyr Team today to discuss your options and take all the necessary steps for a successful move. The right decisions now can make a significant difference by the time you are ready to make your move.