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thinking of moving in the next year? If you want to buy a house, sell a house, or both, you likely have been paying attention to the market and wondering what's in store for 2024. Here's what to expect.
Interest rates
Though 30-year mortgage interest rates are above 7%, lower rates are likely on the horizon.
"I am hearing from many economists that we're going to be in a recession in early 2024 and, because of that, rates will go down," said Gina Piper, the founder / owner and broker associate of Elation Real Estate, who's been selling real estate in the Tri-Valley for 27 years.
Several factors influence the weakening economy, including a weak labor market, rising consumer credit card debt, and high credit card interest rates.
"Auto repossessions are going way up, as well," Piper said. "Many people are struggling financially from the inflation. These are the reasons that there is a good chance interest rates will go down."
House inventory levels
Low numbers of houses for sale mean sellers will have an advantage.
"Given the current low inventory levels and the projected minimal increase in the coming year, I believe the real estate market will continue to favor sellers, making it more of a seller's market," Piper said.
However, because high interest rates discourage both buyers and sellers, houses likely won't have multiple bids and above-asking price offers as much as in 2020 and 2021.
"If interest rates decrease enough, it is highly likely that we will see an increase in inventory," Piper said. "This is because many sellers are rate-locked, meaning they have secured a very attractive interest rate on their current homes and do not want to move and potentially triple their interest rate. However, if rates drop enough, it will provide an opportunity for those who have been hesitant to make a move to finally do so."
Population trends
The Tri-Valley area continues to be a desirable place where people want to move.
"There are numerous reasons why people choose to move to the Tri-Valley area," Piper said. "Some of these reasons include the presence of excellent schools, vibrant downtown areas, and the convenient location near the 580/680 highways for commuters. As a result, buyers from various locations are drawn to the East Bay region."
Next steps for sellers
If you want to sell your house in 2024, Piper recommends starting now on updates and repairs.
"This way, you not only get to enjoy the enhancements while still residing in your home, but you'll also be prepared should you choose to list your property swiftly," Piper said.
Timing a market is tricky, so Piper recommends hiring experienced local Realtors to list your property.
"They can provide valuable guidance on when inventory levels fluctuate, market conditions shift, and help you strategize to potentially time the market," Piper said.
Next steps for buyers
Preparing to buy a house involves optimizing your credit score, lowering your debt-to-income ratio and getting pre-approved for a loan.
"It's recommended to interview at least three lenders and carefully select the one that best aligns with their needs," Piper said. "Once a lender is chosen, it’s crucial for the buyer to get fully qualified for the loan. This way, when the perfect home becomes available, they are in a strong position to submit an offer without any last-minute scrambling."
Elation Real Estate with offices in Pleasanton and Danville, offers a "boutique feel with world-class results." With more than 30 years buying and selling homes in the Tri-Valley, the Elation team guides new and experienced home buyers and sellers through every step of the process.
