The past year, 2023, brought forth a market marked by notable features such as soaring interest rates, financial market uncertainties, surprisingly robust demand in the face of prevailing challenges, and an exceptionally low supply of new listings. This scarcity in housing inventory exerted continuous upward pressure on prices, even as housing affordability took a hit.
The interplay of factors like interest rates and a limited supply of homes for sale restrained purchase activity, leaving prospective buyers facing hurdles. On the flip side, potential sellers were somewhat held back by the mortgage lock-in effect, dampening their motivation to make a move.
As we enter 2024, a shift in the landscape is anticipated. With interest rates on the decline and economic conditions showing signs of rebound, the looming question is: how much further must rates decrease to encourage homeowners to put their properties on the market in more typical numbers?
A Glimpse into a Brighter Future: Economic Indicators Point to a Positive 2024 Housing Market
It's crucial to note that a national report, while offering valuable insights, provides a broad overview that may not capture the nuances of individual markets. The December 2023 figures, at times, involve estimates based on trend data up to November, with final adjustments expected to be minimal. In line with recent years, the factors influencing economic and housing market conditions remain volatile and challenging to predict accurately.
Select the link below to view a digital version of the Compass National Real Estate Report for Januar 2024: