Opportunities Ahead: Why Now Might Be the Right Time to Re-enter the Housing Market in 2024

The past year has presented significant challenges for homebuyers, leading many to pause their search for a new home. If you found yourself in this position due to difficulties in finding a home within your price range, facing tough competition, or struggling to find the right property, there's good news on the horizon. The housing market is undergoing a transition in the latter half of 2024, creating potential opportunities for those looking to re-enter the market. Here are four reasons why now might be the right time to jump back in:

Increased Supply of Homes for Sale

The months' supply of existing homes has been on the rise, as indicated by data from the National Association of Realtors. This increase in inventory means a better chance of finding a home that meets your needs and preferences, providing a big relief for those who previously struggled to find the right home. One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. If you look at data from the National Association of Realtors (NAR), you’ll see how inventory has grown throughout 2024 (see graph below):

Growth in New Home Construction

Builders have been actively increasing the supply of newly built homes, with a focus on crafting smaller, more affordable homes to address the issue of housing undersupply. Approximately one in three homes on the market is now a newly built home, offering a significant increase in options for buyers. Some builders are also offering incentives to make it easier for buyers to find a home that fits their budget. According to data from the Census and NAR, one in three homes on the market is a newly built home (see graph below): 

Reduced Buyer Competition

With mortgage rates hovering around 7% and more housing supply available, there is less intense buyer competition in the market. This creates a unique opportunity for buyers to find a home with less stress and potentially at a better price.

Moderating Home Prices

Home prices are showing signs of moderation, with a more normal pace of appreciation compared to the rapid increases seen in recent years. The average forecast for home price appreciation in 2024 is around 3% to 5%, aligning more closely with historical norms. Speaking of prices, home prices are also showing signs of moderation – and that’s a welcome shift after the rapid appreciation seen in recent years (see graph below):

The Opportunity Ahead

If you're ready to buy, the second half of 2024 may present a more favorable landscape for homebuyers. While there are still challenges, the market conditions are improving. Waiting to make a move carries the risk of increased competition as more buyers recognize the shift in the market. Taking advantage of the current market conditions can position you ahead of others.

In conclusion, if you've put your homeownership dreams on hold, now may be the time to consider jumping back into the market. It's worth exploring the opportunities available to you in today's evolving real estate landscape. Feel free to connect with us to discuss the potential advantages awaiting you in the current market.