Timing the Market, Seasonality, Rates, Today's Real Estate Market AND what do we expect in 2024... Let's talk about it!
Timing The Real Estate Market
Everyone has heard the old adage "Buy Low and Sell High." Can you do that in real estate? Yes, but for the typical homeowner it just doesn't make much sense. Why? The market generally moves as a whole in residential real estate, if the market is up 5% over last year then you current $400K and future $600K home are both up in value.
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Some people propose selling then waiting for values to come down HOWEVER you need somewhere to live and rent is like paying 100% interest. PLUS in the last 75+ years homes have steadily increased in value from 3-4% annually over the longterm. So the best strategy is usually to buy a home that will meet your needs for 5+ years and allow the natural cycle of price appreciation to happen. This is why owning a home has such impact on net worth!
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Seasonality, Rates, Todays Real Estate Market
There are more homes on the market today than just a few months ago (up about 8%) however, compared to the number of homes available in 2019 and prior, we are STILL down nearly 50%. Part of this is due to building less homes over the last decade. So demand is still high, however Rates are impacting affordability (even though they did ease recently), so many would-be buyers are cautious. These factors have combine to put us at about a 95 day supply, meaning buyers have a slight advantage and seller expect to be participating in concessions.
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The Future, What is Next?
While we have no crystal ball, we can look at history to give us some insights for what to expect in 2024. Two happenings that would historically signal rates to begin coming down, one is that the inflation numbers have been dropping over the last six months AND another is that we will be in an election year. Add to that the previously mentioned lack of inventory and it becomes clear that the market could turn quickly.
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Every situation is different, if you want to make a move, need more space, are considering an investment property or just desire to explore your options that is what we do best: Listening to your goals and helping you to reach them in real estate. Give us a call today so we can get YOU moving towards YOUR goals.
The Drew Team is Robin & Steven Drew, Robin McAvoy, Casey Hurlburt and Tom Walton. We are grateful for the opportunity to have served in over 1,000 real estate transactions and the chance to be part of your lives!
