Written by Khalil Henry on September 26th, 2024
As we head into the final quarter of 2024, the real estate market continues to show significant shifts influenced by economic trends, interest rates, and changing buyer preferences. Whether you’re planning to buy or sell a home, staying informed about the latest news and trends can help you make better decisions. Let’s take a look at the most important developments and how you can take action based on them.
1. Mortgage Rates Remain High but Steady
Mortgage rates have been a major focus in 2024, with rates hovering around 7-7.5% for 30-year fixed-rate mortgages. This increase compared to the historically low rates of 2020-2021 has slowed buyer activity in many markets. However, experts are predicting a stabilization in rates as inflation cools and the Federal Reserve holds off on further rate hikes.
What this means for buyers:
If you’re in the market for a home, it’s important to act strategically. While mortgage rates may remain higher than in recent years, they are unlikely to spike further. Locking in a rate sooner rather than later could save you from future rate increases. Additionally, consider exploring alternative mortgage options such as adjustable-rate mortgages (ARMs), which may offer lower initial rates and flexibility.
What this means for sellers:
Higher mortgage rates have made homes less affordable for some buyers, resulting in slower sales in some areas. However, demand remains strong in desirable locations, especially those with limited housing inventory. If you’re selling, consider offering incentives like covering part of the closing costs or providing a mortgage rate buy-down to attract buyers.
2. Inventory Shortages Continue to Drive Prices Up in Key Markets
Despite higher mortgage rates, inventory shortages remain a key challenge in many U.S. markets. According to the National Association of Realtors (NAR), housing inventory is still down nearly 13% year-over-year. In hot markets like Saint Louis, MO, homes are still selling quickly, with many receiving multiple offers despite affordability concerns.
What this means for buyers:
In a low-inventory market, it’s crucial to be prepared and act fast when the right property comes along. Get pre-approved for a mortgage before starting your home search so that you can make a competitive offer. You may also need to be flexible with your must-have features to find a home within your budget.
What this means for sellers:
If you’re thinking about selling, now might be the right time to capitalize on the strong demand and low inventory. Homes that are priced correctly and in good condition are still selling at or above list price in many markets. Work with a real estate professional to accurately price your home based on recent sales in your area.
3. Remote Work Trends Impacting Where People Buy
The shift toward remote work continues to influence real estate trends in 2024. According to a report by Zillow, around 30% of U.S. workers still have the flexibility to work remotely. This has fueled increased interest in suburban and rural areas where homes are more affordable, and buyers can get more space.
What this means for buyers:
If you have the flexibility to work remotely, now might be the time to explore buying a home in an area with lower home prices. Suburbs, small towns, and rural areas often offer better value for your money, and with remote work, your location is less tied to your office’s proximity. Look for communities that offer the amenities and lifestyle you want while still being within commuting distance if you need to go to the office occasionally.
What this means for sellers:
If you own a home in a popular suburban or rural area, demand from remote workers could mean higher sale prices and faster sales. Highlight any features that would appeal to remote workers, such as home offices, fast internet, and outdoor space, when marketing your property.
4. Sustainability and Green Features are in High Demand
In 2024, eco-friendly homes are gaining traction as more buyers prioritize sustainability. According to a recent survey by Realtor.com, 56% of buyers consider energy efficiency and environmentally friendly features important when choosing a home. Homes with solar panels, energy-efficient appliances, and sustainable building materials are becoming more popular.
What this means for buyers:
If you’re concerned about energy costs and sustainability, look for homes that offer green features like solar panels, energy-efficient windows, and smart home technology. While these homes might come at a premium, they can save you money on utilities and potentially qualify for green home financing incentives .
What this means for sellers:
If your home includes green features, make sure to highlight them in your listing. Buyers are increasingly willing to pay more for homes that help them save on energy costs and reduce their environmental impact. If you’re considering home improvements before selling, investing in energy-efficient upgrades could increase your home’s value.
Take Action Today
Whether you’re buying or selling, the 2024 real estate market offers opportunities if you stay informed and act strategically. For buyers, being prepared with financing and understanding the trends will help you make confident decisions. For sellers, it’s still a seller’s market in many areas, but it’s essential to price your home correctly and consider buyer incentives. If you’re thinking about buying or selling in Saint Louis, MO, or the surrounding areas, contact me today for a personalized consultation. Let’s discuss how the latest market trends can work in your favor!