There’s no arguing this past year has been difficult for homebuyers. And if you’re someone who has started the process of searching for a home, maybe you put your search on hold. A Bright MLS study found some of the top reasons buyers paused their search in late 2023 and early 2024 were:
- They couldn’t find anything in their price range
- They didn’t have any successful offers or had difficulty competing
- They couldn’t find the right home
If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the second half of 2024. Here are four reasons why this may be your chance to jump back in.
1. The Supply of Homes for Sale Is Growing
One of the most significant shifts in the market this year is how the months supply of homes for sale has increased. If you look at data from the National Association of Realtors, you’ll see how inventory has grown throughout 2024.
The graph shows the months supply of existing homes. The upward trend this year is clear. This increase means you have a better chance of finding a home that suits your needs and preferences. And if the biggest reason you put off your home search was difficulty finding the right home, this is a big relief.
2. There’s More New Home Construction
And if you still don’t see an existing home you like, another big opportunity lies in the rise of new home construction. Builders have worked to increase the supply of newly built homes this year. They are building smaller, more affordable homes. According to data from the Census and NAR, one in three homes on the market is a newly built home.
This means, that if you didn’t previously look at newly built homes, you may have been cutting your pool of options by a third. Not to mention, some builders are also offering incentives like buying down mortgage rates. That makes it easier for buyers to get a home that fits their budget.
3. Less Buyer Competition
Mortgage rates are still hoverirng around 7%, so buyer demand isn’t as fierce as it once was. And when you combine that with more housing supply, you have a better chance of avoiding an intense bidding war. This creates a unique opportunity for you to find a home you want to buy with less stress and a better price.
4. Home Prices Are Moderating
Home prices are showing signs of moderation. That’s a welcome shift after the rapid appreciation seen in recent years.
This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. That doesn’t mean prices are falling. They are just rising at a more normal pace.
The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%. That moderation means that you are less likely to face the steep price increases we saw a few years ago.
The Opportunity in Front of You
If you are ready and able to buy, you may find that the second half of 2024 is a bit easier to navigate. There are still challenges, but some of the biggest hurdles you have faced are getting better as time wears on.
On the other hand, you could choose to wait. But if you do, here’s the risk you run. As more buyers recognize the shift in the market, competition will grow again. On a similar note, if mortgage rates do come down, more buyers will flood back into the market. So making a move now hels you take advantage of the current market conditions and get ahead of those other buyers.
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