2024 is here and I’ve been reflecting on predictions of what the Real Estate Market will do this year. The longer I am in the industry, the more I realize that trying to guess what the market will do is exactly that. A guess. Time and again I’ve seen unexpected factors at play. Like a rollercoaster, our team at Premier Choice Realty prepares for the ups and downs, and tries to keep our eyes wide open. 🙃 2024…we’re ready for the ride! Here are a few things we’ve noticed.
In the past few years, our local market has seen a fair amount of volatility. The ups being higher than imaginable and the lows coming as a surprise to all. I’ve walked away from more than one transaction absolutely flabbergasted by the outcome. It is predicted that the year will bring more seasonal stability. Price spikes will level off, yet low supply will keep prices from falling significantly.
Interest rates will continue to be a top factor in 2024. In 2023, we saw how market access for Buyers was directly affected by the increased rates. Buyers were priced out of markets due to changing rates. We noticed a trend of buyers having to shift their home searches to lower priced real estate that was further from their desired location. This was a result of interest rate changes affecting affordability and their buying power. Predictions of stabilizing rates will ease this some, but it will also likely increase the buyer pool and heighten competition when the market is already tight on inventory.
A low supply situation throughout Minnesota is still what we are seeing. Thus, homes priced appropriately will continue to sell quickly. Predictions of more sellers entering the marketplace would help to move us closer to a balanced market.
In 2023 we saw seller concessions making a comeback. This of course has been another sign of our changing market dynamics. We believe this trend will continue throughout 2024 as buyers get creative on mitigating interest rates with rate buydowns, seller paid closing costs, etc.
Our team has hit the ground running, and is prepared to offer our clients counsel while we adapt to all the curves the real estate industry sends our way. Real Estate is our passion and we are dedicated to sharing it with our community in a way that exemplifies integrity, knowledge and inspiration. Thank you for your continued trust in us.