Home Sweet Home: Chicagoland Real Estate Trends for the New Year
If you're thinking about buying or selling a home soon, you'll be happy to know that the 2024 real estate market is expected to bring some positive changes. In 2023, there were a few challenges, like higher mortgage rates, rising home prices, and low inventory made it a bit tricky for people looking to make a move. But guess what? We have good news for the new year!
Many experts believe that we've turned a corner and are heading in a positive direction.
Firstly, mortgage rates, which are like the cost of borrowing money for a home, have started to come down. This is great news for people who were finding it a bit hard to afford a home. Experts think that these rates might even go down further. As Mark Fleming, Chief Economist at First American, puts it:
“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), adds:
“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”
The number of homes available for sale might also increase. As mortgage rates become more affordable, more people might decide to buy or sell homes. This means there could be more options for everyone. Even people who were hesitant to sell before might change their minds, creating more choices for buyers. Lisa Sturtevant, Chief Economist at Bright MLS, predicts:
“Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”
Another good thing is that the growth in home prices is expected to slow down a bit. This is good for people who are worried about the cost of homes going up too fast. As the Home Price Expectation Survey (HPES) from Fannie Mae indicates:
“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”
In summary, the experts are saying that 2024 will be a better year for the housing market. So, if you're thinking about moving next year, things are looking up! As one expert, Mike Simonsen, says:
“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”
Want to buy or sell your Chicagoland home in 2024? We are happy to schedule a no obligation, no cost consultation with one of our agents. They can help you understand what's happening in the market and guide you through the process of buying or selling a home. So, get ready for a positive and exciting 2024 in the housing market!