In what direction the Housing Market is headed to? Will I be able to afford a house in the future?
Do you intend to invest in buying a house this year? If Yes, you should stick along. You can never get enough of the recent updates in the real estate market. They are sensitive to even the slightest change in economic policies and trends.
Housing market comprises of the houses for sale, builders, investors, brokers and most of all the buyers who keep the market in demand. Given the nature of the market, anything from the house value to the sales can transform overnight.
In this article, we will take a brief look of few gaps still in the market, predictions for 2024, few tips for buyers & sellers, is market about to crash and lastly a peek into its possible future.
Gaps in the Current Housing Market
The Interest Rate Saga
What comes to your mind when thinking of buying a new house? Yes! The possible mortgage required for the house. Due to much prevalent inflation, you can find the rates to be viable or they can also appear to be out of reach.
Inventory Glitch
The persistent shortage of houses for sale has been the real problem in the housing market since ages. Several measures have been put to place when it comes to having a decent inventory in the housing market. For a normally functioning housing market, it has to have an inventory of a minimum of 5-6 months’ worth of supply.
Regional Bias
Every region has its own demand when it comes to the Housing Market. That’s where local economies, employment rates, public trends, etc contribute in shaping a figure as a price of the house.
Real-Time Predictions for Housing Market in 2024
- Home Value Index (HVI) is predicted to be flat in 2024, by Zillow. In simple words, no serious fluctuation in the values of houses, quite of a stable market.
- Inventory is increasing. The construction activities have accelerated to fulfill the demands as much as possible. It can also bring down the prices of houses.
- House sales are predicted to decrease 8.5% in 2024 in comparison to the sales of 2023.
- Decreased interest rates have been hinted by Federal Open Market Committee (FOMC).
- Continuance of high home prices is something also expected to witness in 2024.
- Supply & demand going hand in hand is still yet to be witnessed. Every progressing year housing market never forgets to add this agenda to its to-do list.
Tips for Buying & Selling in the Current Housing Market
| Tips for Buying | Tips for Selling |
| Try to locate a low-priced location. | Post your home pictures in an utmost appealing fashion. |
| Keep your documents prepared and ready to submit. | Keep your home absolutely ready to sell. |
| Keep on checking the prices to land onto the best ones ASAP. | Participate in the negotiations actively. |
Is Housing Market about to Crash in 2024
The answer is NO! It isn’t going to happen anytime soon. Let’s find out, How?
- No abundance of houses in the market. It keeps on facing the increasing demand but find it hard to meet.
- Demands are not being met, which influence the market to keep building. Resulting in a thriving market.
- Buyers have gone more specific regarding the location of the houses, which keeps generating buyers.
- Lending regulations have gone quite standardized, resulting in projecting the market towards stabilization.
- Foreclosure in the market has gotten very minimal, again shifting the gears towards flourishing.
Shift in the Housing Market till 2028
Lesser Sales
When will inflation come under control?
By taking measures to control the inflation to 2.0% again is a little unpredictable. Moreover, sources also suggest it won’t be maintained to 2.0% till 2016. Seems like a long time. It can further affect the employment rates as well, directly, influencing the sales in the market.
Climate Change will Play its Part
Due to an increasing change in the climate every year, it not only affects humans but also the real estate world. These changes in any form such as rising seas, wildfires, storms and droughts. The investors in the market should avail every chance to secure higher insurances & the building outlay.
Shortage of Housing Supply will Stretch till the End of 2020s
The increasing demand for housing is expected to meet a good fate between 2025 – 2030, by National Association of Home Builders (NAHB). Current estimated demand ranges from 1.5 Million – 3.9 Million houses.
Conclusion
Housing Market is a market facing many ups and downs. Although, many interventions are put into practice in order to keep it away from crashing. Due to an everlastingly increased demand for houses in the market, builders & investors are proactively performing their parts to stabilize the supply and demand graph. The predictions are made merely to sketch out the trends and patterns of the market in the coming future.
This brings us to an end. Kindly, Sound off in the comments what are your insights regarding the current market? Thank you!
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