This document examines top trends in the real estate market for 2024. One of the top trends today is that people are relocating from the large cities to the suburbs. In the next 2 years there may be several other changes that may take place concerning real estate. Here are some important real estate trends that you need to be aware of:
Home prices – Average home prices within 2024 has risen in most cases. Existing homeowners are seeing an increase in equity. This is a result of higher home prices. When this happens a number of buyers are locked out from buying a house, especially first-time home buyers. Now we are seeing some cooling down in the housing market. Median housing prices declined in the first quarter of 2024, but it is predicted home prices will slowly rise in the future.
Digital house hunting – With the advancement of technology in the areas 3D tours, drone videos, and virtual staging online searches are increasing. Now all home buyers use the internet in their search process and a large percent of them use it as their first step.
Moving from the inner city to suburbs – Many people have shifted from urban centers towards suburbs or small cities. The reason is due to personal choice or necessity. Wealthy people are moving because of their choice. The rise of remote work allows people to have greater freedom where they live. There is an increasing number of people living in the Sun Belt, therefore causing an increase in home prices and a shortage of available houses.
Single-Family Housing – With people moving from the inner city to suburbs and smaller towns this is creating a supply problem for single-family homes. Another factor that is causing a shortage is the number of millennials entering the market. In order to catch up with the demand for homes, the number of new homes being built needs to triple. This has resulted in a boom in the housing industry and housing prices to rise.
Multi-Generation Living - With the shortage of supply of homes and rising prices multi-generational living has become more common. Now there are more children who are unwilling to or unable to move out dual to rising costs. Likewise, more people are living with elderly parents in households that have three or more generations. People with variable mortgage rates have experienced higher mortgage payments too due to increased interest rates. Looking ahead, we expect interest rates to drop slightly, but probably not below 6%.
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