Real Estate Forecast: Some Positive News could appear in 2024!

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By JESS BARRON, Lindsey’s Inc. Realtors

If you have been keeping up with the news, you may have heard the forecast from many economy experts stating they expect interest and mortgage rates to decline in 2024. This is great news for our local real estate market. 

After a slower September and October, I have seen an unusually busy holiday season in real estate. The listing inventory has been steady for this time of year. I have also seen an influx of buyers jump back into the market. This is very unusual for this time of year and a great indicator for 2024. 

The real estate market typically follows mortgage rates which follow interest rates. If you have read my previous articles, I have covered this correlation before. I recently wrote an offer on a home for a buyer whose mortgage rate was 6.3%. This is a great improvement from when rates were above seven percent and closer to eight percent late this past summer and earlier in the fall. Several industry experts have forecasted rates to decrease closer to five percent in 2024. This would cause buyers, who have been waiting for the rates to improve, to jump back in the real estate market, thus creating more demand and driving prices up. 

Increased buyer demand is a double-edged sword, however. If rates drop too quickly and demand increases too swiftly then you can see home prices shoot up very quickly also. If prices are too high and the supply of listings does not increase with the buyer demand, we could have a huge problem with buyers not being able to afford a decent home. There is still a housing crisis in our country, particularly for lower income and hourly workers. 

An important factor for 2024 will be the speed and frequency at which the Federal Reserve drops interest rates. The Fed will need to be sensitive to this as not to create another housing bubble. Since I am writing this around Christmas, there is a very famous book that preaches the importance of moderation. I hope the Federal Reserve, along with banks, will remember moderation in 2024. 

Jess Barron is an Associate Broker with Lindseys, Inc. Realtors and former President of the Newnan-Coweta Board of Realtors. 

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