As 2023 draws to a close, numerous forecasters are sharing their insights for 2024. Currently, the consensus suggests little deviation from the trends observed in 2023. However, experience has taught us that forecasts often miss the mark.
One aspect of the 2024 outlook that appears relatively certain for our region concerns housing inventory. It is becoming increasingly apparent that more homes will become available on the market. This shift is attributed to homeowners reconciling with the reality that mortgage rates are unlikely to drop significantly in the near future. Consequently, those who secured their homes at exceptionally low rates during the 2021 mortgage rate dip are more inclined to sell, abandoning hope for a return to those rates.
Throughout this year, a limited supply of homes has maintained a competitive market, despite high costs deterring some potential buyers. Due to the spike in mortgage rates over the past couple of years, many homeowners chose to retain their properties, benefiting from historically low mortgage rates.
An increase in available homes is promising news for prospective buyers. It is expected to distribute demand more evenly and mitigate the rapid escalation of home prices. While this influx of inventory might not significantly reduce home prices, it could certainly interrupt the continuous rise in local housing prices we’ve been seeing, at least temporarily.