The past year has been challenging for homebuyers, with many putting their search on hold due to various obstacles. According to a Bright MLS study, the top reasons for pausing home searches in late 2023 and early 2024 included the inability to find homes within budget, unsuccessful offers, and difficulty competing. If these reasons resonate with you, there’s good news: homebuyer opportunities in 2024 are improving as the housing market undergoes a significant transition in the second half of the year. Here are four reasons why now might be the perfect time to jump back into the homebuying process.
1. Growing Supply of Homes for Sale
One of the most notable shifts in the market this year is the increase in the supply of homes for sale. Data from the National Association of Realtors (NAR) indicates a clear upward trend in inventory throughout 2024. This increase means you have a better chance of finding a home that meets your needs and preferences. If difficulty finding the right home was a major reason you paused your search, this is a significant relief. This is one of the key homebuyer opportunities in 2024.
2. Increase in New Home Construction
If existing homes aren’t meeting your needs, new home construction offers another great opportunity. Builders have been working hard to increase the supply of newly built homes, focusing on smaller, more affordable options to address the long-standing issue of housing undersupply. According to data from the Census and NAR, one in three homes on the market is now newly built. This means that by considering newly built homes, you expand your options significantly. Additionally, some builders offer incentives such as mortgage rate buy-downs, making it easier to fit a new home into your budget.
3. Less Buyer Competition
Mortgage rates around 7% have tempered buyer demand, making the market less competitive. Coupled with increased housing supply, this reduces the intensity of bidding wars. Danielle Hale, Chief Economist at Realtor.com, notes that conditions for home shoppers should improve in the second half of the year, with inventory likely reaching five-year highs. This creates a unique opportunity to find a home with less stress and potentially better pricing.
4. Moderating Home Prices
Home prices are also showing signs of moderation after years of rapid appreciation. This trend is primarily due to the balancing of supply and demand, with supply increasing and demand easing. Although prices are still rising, they are doing so at a more normal pace. The average forecast for home price appreciation in 2024 is between 3% and 5%, which aligns more closely with historical norms. This moderation means you are less likely to face steep price increases. Homebuyer opportunities in 2024 are becoming more favorable as prices stabalize.
The Opportunity in Front of You
If you’re ready and able to buy, the second half of 2024 may present a more navigable market. While challenges remain, many of the biggest hurdles are easing. Waiting to buy, however, carries risks. As more buyers recognize the market shift, competition will increase. Additionally, if mortgage rates decrease as forecasted, more buyers will re-enter the market. Acting now allows you to take advantage of current conditions and get ahead of future competition.
Bottom Line
If you’ve put your dream of homeownership on hold, the second half of 2024 could be your chance to jump back in. Connect with our real estate agents to discuss the opportunities in 2024 and start planning your path to homeownership.