As we embark on 2024, I'm reminded of the line from “Mary Poppins,” when Burt, the chimney sweep, says:
Winds in the east, mist coming in,
Like somethin' is brewin' and bout to begin.
Can't put me finger on what lies in store,
But I fear what's to happen all happened before.
Some economists are predicting a bumpy ride for 2024, which might lead you to believe that the housing market will suffer. Ironically, that is not what happens historically. What’s about to happen has happened before. When the economy goes into a recession, interest rates historically go down. When interest rates go down, buying power goes up, leading to an increase in home purchases. So while the economy may be rocky in 2024, the winds for the housing market are actually fair not foul.
Since November, we’ve already seen interest rates dipping into the 6-percent range and the Federal Reserve has signaled that we could see up to 3 rate cuts in the next 12-months. As the rates drop, watch for an increase in home buyers, and conversely an increased willingness for sellers to consider moving.
If you’re thinking about buying this year, consider doing so sooner than later. If you wait until the interest rates are “ideal,” everyone else who’s been on the sidelines will be rushing back into the market to buy a house and you’ll be competing with the masses. If you purchase now, you’ll have greater negotiating power and may even be able to get some seller concessions.
If you’re thinking about selling this year, now is a good time to start prepping your home to put on the market. There are likely some “honey do” items that need taken care of at your house, and now is a great time to start doing them so that when the buyers are clamoring for more houses in March and April, your home is ready to put on the market and sell for top dollar.
Tune in next week for the top 10 things you can do to prep your home for market.