FORT WAYNE, Ind. (WANE) – With inflation at its highest level in years, many people are putting off their homeownership dreams.
Things may change in the coming months.
Experts predict a positive market trend towards 2024.
There are three important factors that contribute to which direction the market moves. The first is mortgage rates, which are at an all-time high.
Just last month, local real estate agent Sam Hartman said affordable housing was the worst in the nation.
Two other closely related factors are inflation and interest rates, which have also skyrocketed over the past few years.
So how did we get here?
Experts say the economy and housing market are still recovering from the pandemic.
Back then, mortgages and interest rates were much lower, and more people could afford to buy homes, so there wasn’t enough housing to meet the demand at the time.
As a result, average house prices have risen at an alarming rate.
All this, in addition to excess money being pumped into the economy, contributed to the state of the market.
However, things are looking up now.
If buying a home in 2024 is part of your New Year’s resolutions, don’t be afraid to go for it, experts say.
“We have positive indicators that interest rates will fall in 2024,” said Sam Hartman, a real estate agent with Coldwell Banker Real Estate Group. “We are predicting a 5% increase.” Over the next five years, home prices are predicted to rise every year. So don’t be afraid of the process. Don’t be afraid to take the next step to get more information to make that dream a reality. ”
The average interest rate is 8%, nearly triple what it was a few years ago.
Even if you’re willing to pay a little more for your dream home, there are still ways to level the playing field, Hartman says.
There aren’t that many people looking to buy a home right now, so a lot of the bargaining power is in the hands of buyers.
For this reason, Hartman advises sellers to pay extra for renovations and upgrades before putting their home on the market. Buyers are paying high prices and expect more.
He advises contacting your real estate agent 12 months in advance to help you prepare for your purchase.