Patti Berube

2024 REAL ESTATE PREDICITIONS BOTH LOCALLY AND NATIONALLY

For several years; starting even before the Covid era interest rates dropped to 3%; demand for homes in the 4 main counties in Western Washington was almost unlimited. 2023 brought the real estate market back to earth. Home prices were flat, and would-be sellers held off on listing their homes, and home shoppers walked away from 7-8% mortgage rates.

WHAT WILL 2024 BRING?

1) Home prices will go up slightly – still a supply and demand issue.

Many buyers are taking a wait and see attitude towards purchasing their first home, or moving up or down.

Mason Virant, associate director of the Washington Center for Real Estate Research at the University of Washington, expects home prices to tick up 1% to 2% statewide and 1.5% to 3% in pricier areas like Seattle and Bellevue in 2024 compared with 2023.

On the other hand, Zillow estimates Seattle-area home values will end 2023 up about 1% but will dip 1% by the end of 2024.

Realtor.com’s forecast calls for home prices to drop a little more, falling 1.7% in 2024 from 2023.

2) MORTAGE RATES MAY CONTINUE TO DROP

Economists at Fannie Mae, the National Association of Realtors, Redfin and others say they expect mortgage rates to stay above 6% in 2024.

Lawrence Yun, chief economist at NAR, said he expects the 30-year fixed mortgage rate to average lower, at 6.3% in 2024, and that the Fed will cut rates four times. That could calm inflationary conditions, in response to slower economic activity.

3) THERE WILL BE MORE INVENTORY FOR SALE

The main reason why we have so little inventory is because many sellers have low interest rates, many at 3% or below because they bought in recent years or refinanced.

So the market looks to be slightly better in 2024 than in 2023 for buyers at least as affordability should be better. But with inventory so low, especially in the starter home range, there will be multiple offers on some of the homes under $600,000 that a presented right (Market Ready Day One), and staged right and promoted right.

Please let me know if I can answer any questions you may have about either buying or selling! After 17 years I've seen almost every market there is!

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