2024 Q4 Housing Market Predictions

 

What to Expect From the Housing Market in 2024 Q4

Whether you're flipping homes or expanding your real estate portfolio, the best time to expand your investment home portfolio is when the markets are properly aligned. As a buyer, you're likely looking for good mortgage rates and temporary dips in home prices so you can buy low, then sell high. So what does the housing market look like right now, and what can you expect from 2024 Q4 housing market trends? 

This overview will provide a useful look into rates, trends, demand, and seasonal patterns to guide your investment decisions.

 

Home Prices Continue to Rise

As could be expected, housing prices continue to rise. Dips are more unusual than the steady march of increased property value.The gain rate in May was 5.9% from 6.4% in April, which indicates the price increase is slowing, but has not decreased.

Median home prices reached a reached a record high of $426,900 in June 2024, also marking 12 straight months of price increases.

It is also expected that if mortgage rates drop to a desirable level, buying will pick up, and home prices are likely to see another jump.

New Home Prices are Set Low

Interestingly, you may see reports that the median home price is dropping. This is because housing developers see which way the wind is blowing. They are offering homes at lower prices with buyer incentives, counterbalancing the steady continued rise of resale housing prices.

Forbes reports that 31% of builders reduced prices in June along with incentives to further lower new home costs. This means new homes in new neighborhoods are becoming consistently more affordable than resales in established neighborhoods.

 

Mortgage Rates Slowly Cool Down

Mortgage rates have been slowly dropping since the 8% peak in October 2023. The average 30-year fixed mortgage rate dipped below 7% in June and has been trending toward 6.7% as of early August 2024.

The rate of sales has decreased in all four major real estate regions in the US (Northeast, Midwest, South, West) compared to 1 year ago.

The continued drop in mortgage rates will make buying more financially desirable, which may cause market acceleration. Buyers and sellers who have been putting off home purchasing due to the high mortgage rate are more likely to rejoin the market if rates continue to drop.

The Commission Changeover

In case you haven't heard the news, the standard 6% real estate agent comission rule has been overturned. Now, agents can charge any commission they choose, buyers will be responsible for their own agent fees, and different agents or brokerage firms will develop their own unique billing policies. Be prepared to navigate this changing landscape if you hire a real estate agent going forward.

 

Demand for Homes Exceeds Supply

Housing inventory continues to fall short of demand. THere are consistently more buyers than sellers, and even rapid new developments have not yet balanced the scales. This matter has been exacerbated by high mortgage rates, causing homeowners to delay selling properties that currently have a better mortgage rate than they could secure today.

 

2024 Q4 Housing Market Trends for Home Flippers

What do these trends mean from the perspective of the home-flipping investment strategy? 

• The dropping mortgage rates will allow you to spend less on interest while flipping each house.
• The low housing market supply is good news for those bringing "below the bar" homes back to the market. With an overwhelming demand for homes to buy, especially in the more affordable price ranges, flipping shabby houses back into starter and family homes, you are sure to have a waiting audience of eager buyers.
• The trend for newly built homes is worth considering, but likely does not pose serious competition for restored houses in established neighborhoods.
• The new real estate commission rules should be considered. Be sure to hammer out the details with your agent before you sign with them, if you use a real estate agent for your house hunting. If you hunt using other means, this may not be a concern.

 

Planning Your Housing Market Strategy 

Investment properties and house flipping rely on good market conditions or unique favorable opportunities. If you plan to turn your investments into rental properties, Leaf Mortgage can help you build a profitable strategy in selecting, flipping, and then efficiently managing your growing portfolio. Contact us today to learn more.