At the onset, it needs to be clarified that the real estate industry cannot be analyzed in generic terms. Market trends and demand and supply for real estate vary from state to state, city to city, and often between neighborhoods. While Florida can have a soaring real estate market, the Texas scenario can be different.
Hence, for this post, our focus will be on selling or buying a home in Denver, Colorado. We will explore the opportunities of investors in real estate from the standpoint of selling a home in Denver or buying one in the city.
So, let us dive straight into an analysis of what is expected in the real estate market in 2024 based on the experiences of 2023 and before.
What Does 2024 Have in Store for Real Estate Buyers and Sellers?
The year 2023 was not a period that home buyers and sellers would like to remember for a long time into the future. Rather, it is not 2023 alone but an extension of what has been happening in the real estate industry over the past 2/3 years.
High borrowing costs due to hikes in Fed interest rates in 2022 combined with very high home prices led to a situation comparable to the recession of 2008. A steeper real estate market slowdown has not been seen in recent years.
So, what did investors with plans to buy homes in Denver do last year? They were forced to postpone their dreams of home ownership. And would you have wanted to sell your house in Denver in 2023? No, you would surely not prefer to give up your low pandemic-era mortgage rate and move on to a higher interest slab. The result is that there has been a steep drop in listings of homes in Denver.
However, there happens to be a ray of hope for those wanting a house to buy in Denver, Colorado. In December 2023, the Fed indicated that the rising interest rates so common in the past were set for a change. There might be a cut of 0.75% in 2024. Now, typically, mortgage rates rise and fall in tandem with Fed rates. Therefore, cheaper home loans might be a reality in 2024.
This phenomenon is expected to have a cascading effect and rejuvenate the real estate sector. This is where a real estate agent can use all the professional expertise at command to sell a home in Denver or offer houses to buy in Denver and quickly adapt to the expected changes in the industry in 2024.
What does it mean for you? There’s no evidence that home prices are headed for a major decline. So if you’re ready and able to afford a home, this is a great time to test the waters. The best bargains are often found in a slower market, like the one we’re experiencing right now. Contact us to discuss your goals and budget. We can help you make an informed decision about the right time to buy.
And if you’ve been waiting to sell your home, this could be your year. Price growth has slowed, so now is the time to maximize your equity gains while minimizing your competition. Contact us for recommendations and to find out what your home could sell for in today’s market.
Projections for Average House Price in Denver
There was no drastic fall in home prices in 2023 even though the mortgage rates were 8%. This belied the expectation of those wanting to buy homes in Denver, Colorado. The average property values in the country ended 2023 on a high note even though there were some pockets in the USA that did not see any appreciation in property values.
When interest rates rise, prices typically fall because of low demand. But when there is low demand and low supply together, there is a balance between the two. It is expected that this equilibrium will prop up home prices in 2024. Analysts though are not sure about this issue.
Realtor.com projects median home prices to fall marginally by 1.7% while Fannie Mae predicts a slight increase of 2.8%. However, if mortgage rates fall as expected, home prices will surge as more and more buyers enter the market.
What should you do now? If you have been searching for homes to buy in Denver, Colorado, now is the time to test the waters. Contact us at Just Livin Realty to discuss your goals and budget. We will get you the best offers from people willing to sell a house in Denver.
What does it mean for you? If you’re a prospective home buyer, declining mortgage rates could give you the opportunity to lock in a more affordable monthly payment. And if you purchase before the market reheats, you could secure an especially good deal. To find the lowest rate, it pays to compare lenders. Ask us to refer you to a mortgage broker who can help you shop around for the best option.
Sellers also have reason to celebrate buyers’ lower interest rates: As the barriers to entry to the housing market decline, they could enjoy more or better offers. Reach out to discuss how we can help you maximize your home’s sales potential.
Fall in Mortgage Rates
After a long spell of rising mortgage rates, 2024 should see a fall. As mentioned above, the Fed in the December meeting announced that the worst is over and it will cut overnight rates in 2024. And in keeping with the cuts, there will also be a fall in mortgage rates thereby further boosting the real estate sector.
Signals to this effect were seen in October of 2023. The 30-year fixed rate mortgage rate declined from a high of 8% and the trio of Fannie Mae, Realtor.com, and the Mortgage Bankers Association expects that 2024 will close at rates around 6%.
This is all good news but wait, there is a rider here. It seems that the good old days of 3% mortgage rates are permanently a relic of the past. So, people desiring to buy homes in Denver, Colorado should not have too high expectations. On the other hand, it also means that the declining mortgage rates give aspiring home buyers a better opportunity to get more affordable monthly payments.
Celebrations over lower mortgage rates are not limited to buyers only. Selling my house fast in Denver will be a reality as more and more buyers enter the market and sellers get better offers. Both buyers and sellers will be able to unlock the full potential of a house in 2024.
What does it mean for you? If you’ve been waiting to buy a home, you might want to consider purchasing before the competition picks up. Pent-up demand could bring a flood of buyers back into the market as mortgage rates decline. Contact us if you’re ready to begin your home search.
If you’re hoping to sell this year, you may also want to act fast. An increase in listings will make it harder for your home to stand out. We can help you chart the best course to maximize your profits, starting with a professional assessment of your home’s current market value. Reach out to schedule a free consultation.
The Real Estate Market Will Get a Boost in 2024
As has been seen in the past couple of years, the prevailing high mortgage rates have discouraged buyers and sellers from taking an active part in the real estate market. Those who bought homes in Denver have in 2023 been reluctant to trade in current mortgages at higher rates.
The real estate sector therefore became sluggish with so many investors playing the waiting game. After a fall of 17% in 2022 in home sales, it further dipped to 18% in 2023.
But with the expected fall in mortgage rates in 2024, all this is expected to change and home sales activity will go up as compared to 2023. Those willing to sell homes in Denver will want to trade their existing homes, thereby adding inventory to the market.
This is highlighted in a survey conducted recently by Bank of America. It was seen that those willing to wait for mortgage rates to fall before entering the market fell from 85% to 62% over six months. Patience in holding out to buy or sell houses is obviously wearing thin.
What should you do now? If you have been waiting to buy a home in Denver, CO, now is the time to act fast before the competition to buy homes hots up.
On the other hand, if you want to “sell my house fast in Denver” you have to act quickly before the flood of listings makes it difficult for your home to stand out in the crowd.
Reach out to us at Just Livin Realty to get your issues solved right now!
What does it mean for you? Inventory remains tight, but buyers can benefit from the search expertise of a real estate professional. We can tap our extensive network to access off-market and pre-market listings while helping you explore both new construction and existing homes in our area.
While sellers will continue to benefit from the low-inventory environment, they should be prepared to compete against brand-new homes. We can help you prep your property for the market and highlight the features most likely to appeal to today’s buyers.
The Supply Shortage in Housing Will Roll Over to 2024
Will investors eager to buy homes in Denver have a wide range of options to choose from in 2024? Some analysts think so as they feel that potential sellers will ultimately get tired of waiting to list.
On the contrary, economists at Realtor.com think that there could be a drop in inventory by as much as 14%. This problem has been compounded by a shortage in new construction, especially of single-family homes, that fell by 11.2% and 10.3% in 2022 and 2023 respectively. Hence, new houses are not expected to fill the shortfall of inventory that is projected to persist in 2024.
The only solution here is if homeowners decide to sell and then buy again. This will make the pace of sales near normal.
What should you do now? Even though inventory remains scarce if you want to search Denver homes, take the expertise of professional real estate agents. We at Just Livin Realty will tap into our pool of contacts to access off-market and pre-market listings as well as search for new construction projects in your chosen area.
Again, if you are thinking of selling your Denver home, you might benefit from the low-inventory scenario and get a good price but then, you have to contend with newly constructed homes for sale. Here too, our experts will help you to prepare your home suitably so that it appeals to aspiring buyers.
Sources:
- CNN –
https://www.cnn.com/2023/10/19/homes/existing-home-sales-september/index.html - Goldman Sachs –
https://www.gspublishing.com/content/research/en/reports/2023/10/23/2d814362-a656-4cb3-8586-bea8591188e3.html - ABC News –
https://abcnews.go.com/US/millennials-priced-homeownership-feeling-pressure/story?id=105032436 - Bankrate –
https://www.bankrate.com/real-estate/housing-market-2024/ - CBS News –
https://www.cbsnews.com/news/interest-rates-are-paused-heres-why-thats-good-news-for-homebuyers/ - Realtor.com –
https://www.realtor.com/research/2024-national-housing-forecast - NerdWallet –
https://www.nerdwallet.com/article/mortgages/2024-homebuying-trends-property-line-november-2023 - Fast Company –
https://www.fastcompany.com/90991612/home-price-2024-outlook-fannie-mae - Freddie Mac –
https://freddiemac.gcs-web.com/news-releases/news-release-details/mortgage-rates-drop-below-seven-percent - National Association of Realtors –
https://www.nar.realtor/newsroom/nar-chief-economist-lawrence-yun-forecasts-existing-home-sales-will-rise-by-15-percent-next-year - Bank of America –
https://newsroom.bankofamerica.com/content/newsroom/press-releases/2023/12/bofa-report-shows-fewer-prospective-homebuyers-willing-to-wait-f.html - Marketplace –
https://www.marketplace.org/2023/11/27/mortgage-rates-new-home-sales/ - First American –
https://blog.firstam.com/economics/whats-the-outlook-for-the-housing-market-in-2024