NASHVILLE, Tenn. (WKRN) — A roller coaster ride — this is how experts describe what the past year has been like for the real estate industry. So what’s in the cards for 2024? News 2 covered the housing forecast.
Heading into 2024, the economy, and by extension the housing market, faces many headwinds, including inflation and high consumer credit card debt. But even with all these challenges, real estate agent Jeff Czech said interest rates will really set the tone in 2024.
As long as interest rates remain in the 7 percentage point range, real estate will remain neutral. However, 2024 is also an election year, adding further complexity.
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“I think we’ll see some activity in the spring and summer,” said Czech, relocation director for RE/MAX Advantage’s Ashton Real Estate Group. “I think after the summer and into the end of the year is going to be a really difficult time to judge… They’re known for putting pressure on the Fed to at least stabilize things and maybe improve interest rates in an election year. ” and maintain the status quo or better. ”
For the investor base, two different stories could unfold in early 2024, Czech said. Private landlords looking to finance their rentals may continue to face eye-watering double-digit interest rates, but for investors with cash, 2024 presents an opportunity maybe.
“This is a strike time for investors,” Czech said. “This is one of those days where ‘cash is king’ and you should definitely take advantage of even buying in bulk from builders who are really willing to walk away.”
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But what about buyers in 2024? As a relocation director, Checko works with first-time home buyers. He understands their fear of buying at such high interest rates. But in 2024, he argues, interest rates could fall, buyers could flood the market, and prices could soar.
“So if I’m a first-time home buyer, let me say, ‘Don’t buy a new car right now,’ even if it makes you feel a little uncomfortable in terms of your monthly cash flow and how you feel about it.” , let me take care of getting this asset.” Because it is very likely that such a situation will occur again. Several years,” Czech explained.
When it comes to popular areas of town, Czech sees the greatest potential for price increases in Nashville’s urban core.