2023 was not exactly a great year for the housing market. That’s true not only for the U.S, but globally as well.
Thanks to record-breaking inflation, global conflicts, political uncertainty, and rising interest rates, the outlook for the real estate market here in the U.S looked pretty bleak. While we’re definitely not out of the woods yet, there are signs of improvement, and it does look as if there may be light at the end of the tunnel.
Don’t get us wrong, the real estate market can hardly be described as ‘thriving’ but it’s certainly looking healthier than it was in 2023. With inflation easing, and interest rates slowly creeping down, is the housing market finally showing signs of improvement, or are we delaying the inevitable and hurtling towards a 2024 housing market crash?
Here are four insights and forecasts for the 2024 real estate landscape.
A Housing Market Crash Looks Unlikely
While we can’t predict the future, we can look at past history and current statistics and it’s looking more and more likely that a housing market crash will be avoided in 2024. A housing market crash is basically a sudden drop in high home prices because of a lack of demand. Ironically, it’s a lack of inventory that’s helping to protect against a crash.
With the markets as they were last year, there was growing talk of a housing market crash, with people attempting to draw comparisons to the financial crisis of 2008. In today’s landscape, homeowners are in a much better financial spot. This means that we’re unlikely to see the housing markets crash.
Affordable House Pricing Looks to be a Driving Factor for Young Buyers
Experts have predicted that Buffalo, New York looks set to be the hottest housing market location for 2024, closely followed by three locations in Ohio. With the costs of living having increased so much over the last two years, affordable house pricing looks set to be a driving factor in terms of the housing markets, especially for young buyers.
Basically, people want affordable house prices with healthy employment. This is especially true for young buyers looking to get onto the property ladder. Buffalo, New York, is a part of the country that can provide that. Ohio, however, looks set to be the most popular state for real estate. Toledo in particular, is proving especially desirable, along with Cincinnati and Columbus.
California’s Housing Market: Bullish
California offers a strong job market along with affordable housing prices. This makes California an lucrative prospect for homebuyers. California’s housing market is expected to grow stronger in 2024.
California is a good opportune for home buyers, because:
- Affordable Homes: In general, California is known for its high cost of living. However, this does not hold true for every city and town of the state. The Eastern part of California has more affordable housing compared to other US states.
- Robust Job Market: California boasts a strong and diverse job market. Especially, the tech sector is booming. Bullish economy is producing better paying jobs for Californians. It has increased their purchasing power and mortgage payment capacity.
However, we should never forget that affordability is relative. While some areas may be more affordable than other parts of the country, California housing prices are still on the higher side than states like Arizona. Different areas of California has different amenities, so finding a place that satisfies needs within budget is a must. Buyers should carefully research and seek out guidance from professional real estate agents to make the best buying decision.
Foreclosure Likely Won’t Increase in 2024
Even though 2023 saw an upward trend for foreclosure, experts aren’t expecting to see a sudden increase in foreclosure stats. In fact, they’re expecting the opposite as the year ticks by. The main reasons for this are healthy rates of employment and the economy looking decidedly more stable than this time last year. With things as they are, we can expect foreclosure activity to drop to pre-Covid levels sometimes in the third quarter of 2024.
