It’s 2024, and about time for a positive swing in real estate. If you’re an agent, you’re probably wondering what the new year will bring.
"It's clear that the real estate industry is entering a new era of thinking, building, and operating,” said Anita Kramer, Senior Vice President of ULI's Center for Real Estate Economics and Capital Markets. “The emergence of hybrid work models, the strength of the retail sector, and the growth of Sun Belt markets underscore the new reality on the ground.”
So you have every reason to get excited about the 2024 market, and how it can help your career.
But enough chit-chat — let's dive in!
What Top Economists Are Saying About the Future of Real Estate Agents
For the past few years, economists have struggled to make predictions about a post-pandemic real estate market. But there’s a change on the horizon…and it’s looking optimistic.
“Pent-up sellers cannot wait any longer,” said Lawrence Yun, Chief Economist for the National Association of REALTORS® (NAR). “Listings will steadily show up, and new home sales will continue to do well. Existing home sales will rise by 13.5% next year.”
Bright MLS released a similar prediction for 2024. Dr. Lisa Sturtevant, a Bright MLS chief economist, commented, “I think that when we head into the spring, that’s when we’re going to start to see more of the ‘life happens’ moves impact the market.”
This all points to more home sales for you!
Another favorable trend is mortgage rates. “Market sentiment has significantly shifted over the last month leading to a continued decline in mortgage rates,” said Sam Khater, Chief Economist for Freddie Mac.
Mortgage rates have been steadily dropping since the spike in October 2023. After topping 8% in October, mortgage rates started to decline in November. The average rate on 30-year loans fell under 7.5% in Bankrate’s recent survey of lenders.
6 Housing Market Predictions: Why 2024 Will Be a Better Year for Agents
With upward trends in home sales, inventory, and property purchases, economists and real estate professionals expect 2024 to be a better year. Which – after a three-year-long pandemic that caused home sales to hit a downward slope – is a breath of fresh air.
It's important to note that even throughout the pandemic, U.S. real estate agents continued to pull in extremely high salaries. So even through hard times, agents are able to maintain comfortable incomes and stress less.
Let’s take a look at the market trends you can expect to see as a real estate agent in 2024.
1. Home Sales Are Starting to Rise
According to Redfin, home sales are expected to increase by 5% by the end of 2024. That’s a huge upward tick for real estate agents hoping to sell more homes in the new year. Redfin recently released this informative guide predicting what the 2024 real estate market will be like: “Overall, we expect 4.3 million sales in 2024, up 5% year over year. A crucial difference between 2024 and 2023 will be sales gaining momentum throughout the year instead of losing momentum.”
Real estate agents should feel confident about their prospects for the coming year, given this positive trajectory predicted for home sales in 2024.
2. Mortgage Rates Are Dropping
Many agree that mortgage rates will drop and hit their lowest dip by the end of December – as stated in NAR’s recent economic outlook. They aren’t the only ones predicting this, though!
Redfin also expects a decline in mortgage rates this year, as outlined in their informative blog post.
The rate on the 30-year fixed-rate mortgage was averaging 7.22% as of November 30th. Redfin’s 2024 forecast expects this rate to drop to 6.6% by the end of 2024.
In addition, a 2024 housing forecast by Realtor.com claimed that mortgage rates will drop to 6.5% by the end of 2024.
One factor influencing the steadily falling mortgage rates is inflation, which was down to 3.2% in October 2023. While that’s still above the Federal Reserve’s official target of 2%, forecasters think the Fed is done raising rates. That’s a shift that will relieve some of the pressure on expensive mortgages.
3. Foreign Buyers Are Becoming More Popular
Those who can afford to buy homes without taking out a mortgage will find good deals in 2024.
Yun expects the real estate market to hit a major boost once foreign buyers return to the market – which is expected in 2024. These insights suggest that this influx of international interest will contribute to increased demand for real estate agents, driving the demand for your specialized services even higher.
4. The Luxury Market Will Continue to Thrive
If you work in the real estate industry, you’ll know all about the luxury home market. A niche segment focusing on high-income properties, luxury, glamor, and high-class living.
According to a study by Anarock, 18% of the total units sold in the top seven cities now fall into the luxury category, compared to just 7% in 2019. (And that number is steadily rising in 2024!)
The luxury market has the potential for tremendous financial opportunity, with North America playing the leading role. In fact, Nashville, Tennessee was recently named the top destination for luxury buyers in the United States.
This upward trend in the demand for luxury real estate could mean more thrilling opportunities for agents in the new year.
5. A Homebuying Surge Is Happening in 2024
A homebuying surge is expected in 2024. With the expectation of mortgage rates coming down and home prices falling slightly, real estate professionals are anticipating a significant uptick in buyer activity, as potential homeowners seek to take advantage of favorable market conditions.
6. Could Home Prices Fall or Rise?
Here’s the thing: mortgage rates are predicted to come down in 2024. But the low house prices we had before the pandemic will most likely not return. Higher home prices are the “new normal.”
We are, however, expected to hit an era of better mortgage rates. Lower rates and more inventories will bring more buyers into the market. So regardless of whether the home prices stay the same or not, experts expect more homebuyers.
New data also suggests that home prices are expected to fall 1.7% in 2024, which is great news for you and your clients.
A recent blog by Redfin states that they expect home prices to fall more significantly in certain parts of the nation, such as parts of coastal Florida. (Good news for beach lovers!)
Real Estate Trends You Can Expect in 2024
Along with the blossoming promise of more homebuyers in 2024, you should be aware of these industry trends.
House Hunting Goes Digital
The pandemic really affected the way people shop. Amazon Prime, online grocery shopping, and even online home tours are the preferred methods for making purchases. The real estate market is no exception. Since 2020, some homebuyers even purchased homes without first stepping foot inside!
You can expect to see a big wave of virtual reality, 3D tours, virtual staging, and drone videos in 2024.
The Sun Belt Increases in Popularity
The Sun Belt is a region of the United States that stretches across the Southeast and Southwest. According to RE Max Legends, The Sun Belt is emerging as the forerunner for residential growth. Cities such as Nashville, Phoenix, Dallas/Fort Worth, Atlanta, and Austin are all at the forefront of this real estate resurgence. They’ve all demonstrated a keen interest in urban growth, making them key players in the industry's new era.
The 2024 Emerging Trends in Real Estate report, a collaborative effort by PwC and the Urban Land Institute, also identifies Atlanta as one of the top markets poised for substantial development. If you’ve ever thought about getting your license or living in the Peach State, this is your opportunity.
And if you’ve ever thought about getting your license in Music City, this is your time to shine. For the third year in a row, Nashville has been ranked as the top market for overall real estate prospects according to a new study by the Urban Land Institute.
Will 2024 Be a Better Time to Buy a House Overall?
Rest assured; it will be easier to buy a house in 2024 than it was in 2023. With rates, prices, and household income taken into account, homes are predicted to be 5% more affordable by the end of the year.
High mortgage rates and prices have made it especially difficult for first-time buyers to afford monthly mortgage payments for a long time. So, if you have clients who are struggling, you can tell them to take heart. It’s getting better in 2024.
The Takeaway? 2024 Is an Exciting Year to Be a Real Estate Agent
The takeaway should be clear: 2024 predicts a more exciting year for real estate agents than we’ve had in a while. This year, the world is your oyster.
Regardless of the economic lows that swept over the nation during the pandemic, or past recessions that affected jobs – people still needed places to live. Real estate agents were still in very high demand.
However, certain years in real estate can have a bit of extra sparkle, – and 2024 is one of them. Make sure you’re ready to tackle the new year by completing your Continuing Education courses or getting your real estate license. You have big things up ahead!
The content provided on this website is deemed accurate at the time of creation.
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