Unlocking Homebuyer Opportunities in 2024

No doubt about it, the past year has been a rollercoaster for homebuyers. If you've paused your search, you’re definitely not alone. A recent Bright MLS study highlighted the main reasons why many prospective buyers hit the brakes in late 2023 and early 2024:

• Couldn't find anything within their budget
• Struggled with unsuccessful offers and fierce competition
• Couldn't locate the right home

If any of these hurdles sound familiar, there’s good news on the horizon. The housing market is evolving, and the second half of 2024 might just be your golden opportunity to dive back in. Here are four reasons why you should consider resuming your search now.

1. A Growing Supply of Homes for Sale

One of the most notable changes this year is the increase in the months’ supply of homes for sale. According to the National Association of Realtors (NAR), inventory has been steadily climbing throughout 2024. This graph from NAR shows a clear upward trend in the supply of existing homes, meaning those previously lived in by another homeowner.

This increase in inventory boosts your chances of finding a home that fits your needs and desires. If your main frustration was not finding the right home, this development is a significant relief.

2. More New Home Construction

If existing homes still aren’t hitting the mark, consider the rising opportunities in new home construction. Builders have ramped up the production of newly built homes, focusing on smaller, more affordable options that are highly sought after in today’s market. This effort helps tackle the longstanding issue of housing undersupply and offers more budget-friendly choices.

Data from the Census and NAR indicates that one in three homes on the market is now newly built. By expanding your search to include new constructions, you’re effectively increasing your pool of potential homes by a third. Plus, many builders are offering incentives like mortgage rate buy-downs to make new homes even more accessible.

Talk to your real estate agent about local builders and their offerings. Your agent’s knowledge of builder reputations, contract details, and other critical factors will be invaluable in your decision-making process.

3. Less Buyer Competition

With mortgage rates hovering around 7%, buyer demand isn’t as intense as it once was. Coupled with the increase in housing supply, this means fewer bidding wars. Danielle Hale, Chief Economist at Realtor.com, points out that the latter half of 2024 may offer better conditions for home shoppers:

“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”

This creates a unique window for you to find a home with less stress and potentially at a more favorable price.

4. Moderating Home Prices

Home prices are also showing signs of moderation, which is a refreshing change after the rapid increases of recent years. This trend is driven by the growing supply and easing demand. While prices are still rising, they’re doing so at a more manageable pace. The average forecast for home price appreciation in 2024 is between 3% to 5%, aligning more closely with historical norms.

This moderation means you’re less likely to face the steep price hikes seen in the past, making it a more balanced market for buyers.

The Opportunity in Front of You

If you're ready and able to buy, the second half of 2024 might be an opportune time to jump back in. Challenges still exist, but some of the major obstacles are becoming less daunting.

Alternatively, you could choose to wait. However, if you do, there’s a risk that as more buyers notice the market shift, competition will increase again. Similarly, if mortgage rates drop (as some forecasts predict), more buyers will re-enter the market, potentially heightening competition. Acting now allows you to capitalize on the current conditions and get ahead of the crowd.

Bottom Line

If you've put your homeownership dreams on hold, now might be the perfect time to reignite your search. Let’s connect to explore the opportunities available in today’s market and find the perfect home for you.