What You Need to Know about Buying a House in 2024
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Dena Landon Contributing AuthorClose
Dena Landon Contributing AuthorDena Landon is a writer with over 10 years of experience and has had bylines appear in The Washington Post, Salon, Good Housekeeping and more. A homeowner and real estate investor herself, Dena's bought and sold four homes, worked in property management for other investors, and has written over 200 articles on real estate.
Homebuyers dealt with a tough market in 2023, as home prices kept rising and mortgage rates reached their highest levels in over 20 years.
According to David Roche from Independent Strategy, the view is that U.S. inflation is unlikely to reach 2%. Roche also asserts that the U.S. Federal Reserve has concluded its interest rate hikes, indicating a potential downward trajectory in the next move.
If you’ve been thinking of buying a house for a while now, you may be ready to throw up your hands in despair. Will it ever be a good time to buy?
According to Sebastian Frey, an experienced agent in Santa Cruz, California, the answer is “yes.”
Despite the past few years of a crazy housing market, Frey says, “People buy and sell houses regardless of where we are in any housing cycle. They buy when they have the need.”
With a stabilized market, finding a home you love at a reasonable price could be even easier. It’s always difficult — if not impossible — to time the market perfectly. Most buyers will buy based on their needs rather than market factors.
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If you have the need, here’s what you need to know about buying a house in 2024.
Is now a good time to buy a home?
Buying a home can be a great investment, but it can be nerve-wracking to deplete your savings when the economy might be in a recession or unemployment is on the rise. These market characteristics often influence the decision to buy, sell, or continue renting. Here are some of the factors that might affect your decision to buy right now:
Inflated home prices
It’s no secret that housing prices skyrocketed over the past year. The median home price in the United States rose from $429,000 in the first quarter of 2023 to $431,000.
NAR’s Chief Economist, Lawrence Yun, anticipates a 13.5% surge in existing home sales for the upcoming year. Additionally, he expects mortgage rates to hover between 6-7% by the Spring buying season 2024 and anticipates more sellers entering the market.
While you may not want to buy when prices are surging, it’s hard to predict if and when they could drop. Consistent, long-term growth in home prices in the past indicates that waiting to buy could lead you to pay even more.
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