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This Month: 2024 Home Trends
Every January, I like to start by sharing some of my research into what is hot for the year to come. What are the hottest Home Trends as shared by designers and industry experts? I also like to look at the market and review expectations from housing industry experts.
This way, you may better plan not only the changes to your home that will bring you joy, but those that will offer your investment added value.
On the other hand, if your plans for the new year involve finding a home to suit your changing and current needs, I can help you with that too. Just contact me today for your home valuation analysis!
On the Real Estate Front
Given strong economic indicators in the market such as economic and wage growth coupled with price and interest rate easing, 2024 is expected to be a dynamic, positive year for the real estate market.
First, it is expected that rates will continue to come down and settle at about 5% this year and buyers tend to act when this happens. To recap, we've gone from rates in the 8% range to now in the 6% range.
Lawrence Yun, the Chief Economist of the National Association of Realtors believes they will settle somewhere around 5%.
He also reminds us that though home interest rates have been coming down, we continue to have supply side issues and that "as long as we have supply issues, this will continue to influence prices."
He believes that "what is needed in the housing market is really about addressing the supply situation. As long we have more supply, it will moderate home price growth. This will be good for America. People's incomes are rising at about 4%. We need home prices not to exceed that 4% level."
The other salient issue he points at is people "stuck" in their homes because of the lower interest rates obtained during the pandemic. This, despite families outgrowing these very homes due to family size and other demographics impacting an already low inventory :
- 7 million babies were born in the U.S. last year
- 7 million Americans turned 65 last year
In summary, there are a lot of people in the market needing to upsize or downsize who may realize that current rates will be worth the move to the right size home for current needs.
Therefore, it is expected that inventory will also increase this year!
Another economist, Skylar Olsen predicts that home prices will be flat or even come down somewhat which bodes well for home buyer affordability in 2024.
Now take a closer look at recent local data and please examine the national data and the local statistics outlined for you below to see where we are right now.
MARKET HIGHLIGHTS
Below, please find national real estate housing data and infographics from the National Association of Realtors. Keep reading to view the summary for the Louisiana market and in particular, St. Tammany and Tangipahoa Parishes.
We think you'll be most interested in what is happening here, but it helps to be aware of national market trends.
Please keep in mind that on the national level, data lags one month behind.
National Snapshot for the month of November
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Pending Sales - stayed flat at 0%- month over month [while in the regional South they decreased by 2.3%]
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Existing Home Sales - increased by 0.8% - month over month
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Home Prices - increased 4.0% - year over year
Present Challenges:
- Affordability
- Inventory Shortages
- Insurance Rates
- Interest Rates
The month of November continues to trend toward a Sellers Market with 3.5 months of Inventory.
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