Real Estate Trends for 2024
Excited to dive into the scoop on what's cooking in the real estate world for 2024! Picture this – homes you can tour from your couch, neighborhoods seen from the sky, and getting cozy with your dream home online. The suburbs are stealing the spotlight, thanks to lower bills and chill vibes.
Sun-soaked places are having a moment, and everyone's after those cozy single-family nests. Prices are doing a little dance, and mortgages are feeling like a sweet deal. But wait, there's a twist – the rental scene is taking a nap in the big cities. Ready to ride this wave of change and make 2024 your best real estate year yet? Let's roll!
1. People are Searching for Homes Online
In 2024, even more folks are jumping on the online house-hunting bandwagon. Yep, that's right – instead of pounding the pavement, they're using their gadgets to look for homes.
It's like having a magic window into a world of houses, where you can peek inside and check them out without even stepping outside. The internet is buzzing with pictures, details, and cool virtual tours, making it a breeze for everyone to find their dream home from the comfort of their own space.
a. 3D Tours
Immerse yourself in the future of home shopping with 3D tours. Navigate through the intricacies of your potential abode from the comfort of your current one. These virtual walkthroughs provide a comprehensive view, allowing buyers to assess the property as if physically present.
b. Drone Videos
Soar to new heights in your property search with drone videos. Capture the essence of the neighborhood and get a bird's-eye view of your prospective home. Drones offer a unique perspective, unveiling hidden charms and potential pitfalls that might escape the naked eye.
c. Virtual Staging
Say goodbye to the guesswork of envisioning a home's potential. Virtual staging allows buyers to visualize their dream space by digitally furnishing empty rooms. It's the magic touch that transforms a blank canvas into a future home.
In tandem with these advancements, the digital wave has also touched the mortgage domain, making online mortgage applications a streamlined reality.
2. People are Leaving Cities for the Suburbs
Get ready for a big change in 2024 and beyond – lots of people are packing up and moving from busy cities to the suburbs. Why? Well, the COVID-19 pandemic shook things up, and now the real estate world is seeing a shift.
For some folks, it's not a choice but a must-do because money matters are tricky. On the bright side, others see it as a golden chance to pick a life with more space, peace, and a friendly neighborhood, away from all the city chaos.
Living in the suburbs isn't just about escaping the city noise; it's also about saving some cash. Taxes are lower, and homes plus rent are more budget-friendly, making the suburban life look pretty tempting.
It's like finding a sweet spot where you can have a calm, comfy home and still have some extra money in your pocket. So, if you're thinking about making a move, the suburbs might be calling your name!
3. Region with Lots of Sun Continues To Rise
More and more people are turning their eyes towards the Sun Belt – a region with lots of sunshine and exciting possibilities.
Imagine urban folks looking for something new and finding it in the warmth and opportunities of the Sun Belt. It's not just about changing where you live; it's about wanting a different and better way of life.
What makes the Sun Belt so attractive? Well, it's not just the sunny weather, though that's a big part of it. It's also about getting a more laid-back lifestyle, spending less money on everyday things, and, in some places, finding lots of job opportunities.
So, it's like discovering a sunny haven that gives you a chance to enjoy life, save some money, and maybe even grab a cool job. If you're dreaming of a change, the Sun Belt might just be where you find it!
4. Shortage of Single-Family Housing
Alright, let's break it down! More and more people are moving to the suburbs, and they really want houses with their own space. Millennials, who are a big part of this move, aren't just looking for any old house – they're after a place to call their own, start a family, and make things stable.
But here's the twist – because so many folks want these houses, we're facing a bit of a challenge. There just aren't enough single-family homes to go around. It's like everyone showed up at the house party, but there aren't enough seats. So, while it's awesome that people want these homes, finding one might be a bit like searching for treasure in a game.
5. House Prices are Still Going Up
Let's dive into the money side of things in the housing world! So, more and more people really want homes, and guess what happens? The prices go up, up, up!
Back in September 2020, the typical price for a single-family home was a whopping $350,000, and that's 11% more than the year before – quite a jump!
Now, here's where it gets interesting. Because everyone is so excited about getting a house in the suburbs, some folks are even ready to pay more than what the seller is asking for. It's like a big competition – who can offer the most money to make sure they get the house they really want.
So, the real estate world is turning into a bit of a game where everyone is bringing their A-game to snag their dream home.
Experts forecast home prices to end this year up 2.8% and to rise another 1.5% in 2024. That means prices are expected to continue climbing, and that makes buying a home a good investment. (Source: Keeping Current Matters)
6. Mortgages Goes Down
Let's talk about a great opportunity in the world of buying homes! So, the cost of getting a mortgage, which is like a loan to buy a house, has dropped a lot.
In January 2021, it reached an all-time low of 2.65%. That's a super low number, and because of that, lots of people got excited and applied for mortgages. It was like a rush – the highest number of applications in 10 months at the start of the year.
Now, why did this happen? Well, because of all the money troubles caused by the pandemic, the folks in charge of these things decided to keep the interest rates really close to zero.
That's like a big green light for anyone dreaming of owning a home – it made the path to homeownership a bit smoother and more affordable. So, if you're thinking about getting a house, it's a pretty good time to check out those mortgage rates!
7. Fewer People are Renting Homes
In many big cities, more and more folks are choosing to own a home instead of renting one. The demand for rental places is not as high as before.
Wealthy people are taking this chance to become homeowners, and others are finding different ways to save money – like living with family or finding homes that cost less.
A study by Pew Research tells us that 2020 was a year where things really shifted. It's kind of like a time in history – you know, like the Great Depression.
What happened is, a lot of young adults, aged 18-29, decided to stay with their parents instead of renting a place on their own. So, it's like everyone is rethinking how they want to live and finding new ways to make it work.
Conclusion - How These Trends Impact Real Estate Professionals
Let's wrap it up and talk about what all these changes mean for real estate folks like us!
As we look ahead into 2024, the world of homes is changing. There's a lot of interesting tech stuff, more people wanting to live in the suburbs, and the whole housing game is getting a makeover.
Now, for us in the real estate industry, the secret sauce is to roll with these changes. We've got to be smart, stay informed, and be open to all the awesome things happening in the real estate world.
Think of it like being the captain of a ship in uncharted waters. The more we adapt, the better we can guide our clients through the twists and turns of this exciting journey. So, let's embrace the new era, make savvy choices, and get ready for the fantastic opportunities that this evolving real estate market has in store for us. It's time to set sail into a future filled with possibilities!
For additional read: Learn about how resilient agents are succeeding today to find more deals in a hard market.