Did you know that home sales in 2023 were the lowest they've ever been in nearly 30 decades?
Some of the reasons for this were - home owners keeping low mortgage rates locked in, a limited supply of home inventory, and rising interest rates.
Last year, 4 million existing-home sales were the same as in 1995, despite there being 70 million more people living in the U.S in the year 2023. With the increase in housing demand, this could result in an increase in home sales in the next eight to ten years.
Compared to 2023, things are looking up for 2024. In February 2024, existing-home sales rose 9.5% from the prior month, which produced a 10% inventory increase in the housing market. One exception to this was in Northeast, where home sales fell by 10%. To put this into perspective, the Northeast also had the largest home price gain due to low inventory tied with high demand and multiple offers from potential buyers.
As for the future, the real estate market is hard to predict. One aspect to keep an eye on is how buyers and sellers react to the terms of the pending NARS settlement agreement, which is awaiting final approval from the court. Both sellers and buyers stand to gain from a collaborative approach between the listing broker and buyer broker. The proposed settlement aims to preserve consumer freedom regarding offering compensation off-MLS. This is particularly crucial for ensuring diverse representation options for first-time buyers, historically marginalized individuals, and veterans, who often face challenges in securing a down payment.
Although the market can be unpredictable at times, that still doesn't deter others from buying and investing in real estate.
Are you looking to buy or list a home? Let Armenta Realty help you! Armenta Realty has agents servicing Tuscan, San Diego, and Palm Springs, and not only that, we offer nationwide lending services.
Reference: https://www.nar.realtor/magazine/real-estate-news/economy/what-will-the-future-bring
