What the Statistics Say: Real Estate in 2023 and High Rates in 2024
There’s no denying the real estate market has been quite a roller coaster ride over the past decade, and it’s showed no signs of slowing down in the years to come. While experts expect growth to continue in the real estate market in 2023, they are also predicting that interest rates may cause some turbulence in 2024. So what do the numbers and statistics say about these predictions? Here, we’ll dive into what’s happening in real estate in 2023, what high rates mean, and how homeowners can stay ahead of the game.
With homeowners reaping the benefits of low interest rates during the pandemic, it’s no surprise that the real estate market in 2023 is expected to remain strong. According to the National Association of Realtors, the US Real Estate Housing Forecast estimates that home sales will increase by 8.0% in 2023 and home prices will rise 5.5%. This forecast is based on experts predicting that the economy will continue to grow and the job market will improve.
However, while real estate in 2023 is expected to remain positive, it’s predicted that interest rates may start rising even more in 2024. The Mortgage Report predicts that the Fed will raise rates as early as Q1 2023, with many analysts expecting rates to reach 7.5% by Q3 2023. This increase in rates may lead to fewer buyers being able to afford homes, which could put downward pressure on real estate prices.
That being said, there’s no need to panic for homeowners who plan on selling in 2023 or 2024. By being proactive, sellers can take steps to get ahead of the curve. For example, it’s crucial to price your home right. If you price too high and rates increase, buyers will have even less incentive to make an offer. On the other hand, pricing your home slightly under market value can make it more appealing during times of high rates.
On the flip side, homeowners who plan on buying a new home in 2023 or 2024 should also take heed of the potential interest rate increases. It’s crucial to work with a professional real estate agent who can navigate the market and help you find a home that fits within your budget. Additionally, taking steps to improve your credit score can also help you secure a lower interest rate, which can save you thousands over the life of your mortgage.
In summary, 2023 looks to be a great year for real estate with strong growth predicted across the board. However, it’s important to remember that interest rates climbing into 2024, which could cause some turbulence in the market. By being proactive and taking steps to prepare for these potential changes, homeowners can stay ahead of the game and make the most out of this exciting time in the real estate market. Whether you’re looking to sell or buy a home, make sure you work with a professional real estate agent who can help guide you through these changes.