Charlotte, NC, November 23, 2023 - With 2023 ending soon, real estate experts aim to answer the biggest question in the market - Will prices go up or down? While opinions are unsurprisingly divided, most predict that 2024 is more likely to be a seller’s market.
We’ve all seen a sharp rise in housing prices over the past couple of years, and with the economy still in pretty bad shape, it’s safe to say that there’s a lot of uncertainty for buyers and sellers alike.
Q4 has always seen a decline in home sales historically, and this year is no different. Naturally, people would rather prioritize buying holiday gifts for family and friends rather than shop for a new house. And the steep mortgage rates are not helping either when people are already spending a lot in preparation for the festivities. According to Bankrate’s latest national survey of large lenders, the average rate of a 30-year mortgage was 7.69% in November.
Chief Economist for the National Association of Realtors (NAR), Lawrence Yun, says there are simply not enough homes for sale. The median sale price of a US house this September was $394,300, 2.8% more than the previous year. The overall number of houses for sale was 1.13 million units, an 8.1% drop from 2022. The low inventory, high-interest rates, holiday spending, and general market uncertainty all make up the recipe for a slowdown in home sales.
However, some experts believe that sales could pick up next year. Chen Zhao, lead economist for Redfin, sees it happening even if rates will likely remain above 6%. Even Yun believes that 2024 could see an increase in new constructions and seller listings from existing homeowners as mortgage rates ease down a bit. He anticipates that home sales might increase by up to 15%.
Jessica Lautz, Deputy Chief Economist and VP of NAR, also believes that diligent would-be buyers might see this as a perfect opportunity to buy. After all, with the general market fear, there would be less buying competition, and those who time the market right can end up victorious.
If you are an existing homeowner looking to sell now, you might benefit from the inflated prices instead of waiting for mortgage rates to drop down. After all, sellers still get the upper hand in a down economy when demand exceeds the supply. Even if some buyers feel discouraged to invest, there will always be someone who needs a new home. It may not be wise to wait on the sidelines as no one can predict exactly if prices will go up or down.
This is especially true if you need the cash urgently because of a life event. You don’t want to be selling when there is a surplus of listings, as that would give buyers more options. If you want to sell your house fast in Charlotte, NC, for any reason, contact
TravisBuysHomes.com for a simple and quick process.