In 2023, our real estate market was shaped by affordability challenges for potential buyers. Many people spent the year watching mortgage rates and hoping for something to change. Luckily, 2024 is shaping up to be a good year to make a move.
If you’re thinking of buying or selling this year, understanding the market is key. Let’s look at five top trends we expect to see in 2024, and what they mean for you.
Trend 1: The rise of secondary markets.
Affordability is still low, though the situation is improving as rates start to go down. More buyers are entering the market, but increasing affordability will be a slow process.
When you combine lingering affordability challenges with the increased flexibility from remote work, you see buyers widening their geographical search parameters. Many hopeful 2024 buyers will be looking away from primary markets like Chicago, New York, Los Angeles, and San Francisco, and towards secondary markets, which have mid-sized but rapidly growing populations. Many secondary markets will see substantial growth this year. If you’re looking for your dream home, don’t overlook secondary markets!
Trend 2: An increase in rental affordability.
During this slow movement towards increased affordability for buyers, rentals will continue to be an essential piece of the housing market. Construction of new rental units will increase choices for renters, and less competition may mean lower prices. This is great news for those who aren’t yet able to buy!
For those who are able to buy, building equity in a home will still be more beneficial long term than renting.
Trend 3: More rentals on the MLS.
Anyone who’s looking to buy a home looks at their local Multiple Listing Network, or MLS, whether it’s directly or through a website that uses MLS data. However, that hasn’t been true for renting.
We expect that to change this year, as some MLSs are successful with integrating rental listings. Having a more centralized source for rental listings can benefit both renters and landlords, as it can help the right renter find the right place to live—with less effort on both sides! As more MLSs try this new tactic, it’ll become more and more common to go to your local MLS for rentals.
Trend 4: Including rent payments in credit history.
Fannie Mae and Freddie Mac have both started programs that count on-time rental payments in credit history, and other institutions are following their lead.
This is a concrete step toward a more equitable housing market, as including rental payments in credit histories helps to build credit and more accurately represent potential buyers’ ability to repay a mortgage. This increases the likelihood that a renter can move into home ownership, thereby helping to address disparities in generational wealth.
Trend 5: Utilizing cash buyers.
As we see rates soften this year and affordability increase, we’ll see more potential buyers return to the market. Some of these buyers have been waiting for a year or more. As you can imagine, these buyers want to be ready to jump as soon as they find their dream home! We expect to see an increase in people depending on cash buyers for a fast sale of their current home.
At MarketPro Homebuyers, we help people in this exact situation. We’ll give you a fast cash offer and you can close on your schedule in as little as a week. We buy houses in any condition; you don’t have to do any repairs, even if your home is distressed!
We hope this article has helped you to understand the changing housing market and the choices available to you as you navigate your real estate decisions. If you find yourself looking for your dream home, don’t let the sale of your current home hold you back—we buy houses fast so you’re ready to move!
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; we buy houses with no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.
