It has been a bit of a roller coaster ride for the housing market since the pandemic. In 2020 and 2021, mortgage interest rates fell to a historically low rate of 3 to 4%. However, those interest rates were aberrations, and it does not look like they will reach that low rate any time in the near future.
Nationally, interest rates have risen this past year, increasing mortgage costs. Because lending standards have become more rigorous, prices will not decrease dramatically as they did during the 2008 market crash. Low borrowing rates encouraged first-time homebuyers to purchase homes, and a lack of supply of houses for sale during the pandemic drove the market even higher. While analysts and economists disagree on whether prices will stay flat or collapse, they agree that the housing market will slow.
Will mortgage rates drop in 2024?
In the words of the Magic Eight Ball, that iconic fortune teller of yesteryear, “signs point to yes.” However, the Magic Eight Ball has never had to predict the housing market forecast after a global pandemic. Still, many analysts are predicting lower mortgage rates over the next year. How much they will drop, though, they “cannot predict now.”
The National Association of Realtors expects mortgage interest rates to drop below 6% by 2024. With today’s 30-year fixed mortgage rates at 7.08%, a rate below 6% feels like a relief. For first-time home buyers, typically millennials, this might work to their advantage. Having no home equity to begin with, this fact could mean more purchasing power for them.
Still, a 6% interest rate may feel hefty to some after the unbelievably low rates in 2020 and 2021. What’s more, even with slightly decreasing mortgage costs, the quantity of houses for sale on a national level is low. In a year-over-year analysis, the national supply has decreased by almost 22%.
The Cedarburg housing market, however, shows better results. The supply of listed houses has gone up by almost 35% just over the last month. With assistance from a top-notch Realtor, home buyers in Cedarburg have more luck finding a property than the national home buyer.
Will home prices drop in 2024?
The last few years saw an increase in home sales prices. In 2021 alone, the median sale price of homes nationwide rose by 16.9%. Though it is predicted that the cost of the average home will increase over the next two years, the percentage rate of growth will likely slow. Of course, analysts can only predict these trends, and it is not a foregone conclusion.
Cedarburg home sale prices have seen an increase of 62.5% in the last month, and the real estate landscape still remains a seller’s market. The cost of living in Cedarburg is just 3% higher than the national average. In addition, the median household income of Cedarburg is around $80,000, which is also on par with the national average.
The predicted fall in mortgage rates, combined with the slowing rate of house price growth and the high household income, makes home buying more favorable for those looking for a home in Cedarburg. Working with a top agency like the Sewart Group is a valuable step for anyone looking for a house in the area. An expert agent is ready to help you find the perfect home to fit your financial position.
What is the housing market forecast?
With housing market fluctuations that could make any home buyer or seller dizzy, we have seen a slew of data and information these past few years. On top of that, national data does not always align with individual cities’ data. In general, though, United States home buyers have had difficulty finding affordable homes lately, especially first-time buyers.
Despite the dark financial clouds looming, those would-be homebuyers can now see a silver lining and the sun breaking through. The median price of homes sold this spring was down 0.9% nationwide compared with a year ago. The 131-month streak of house price increases ended with year-over-year declines. By comparison, total home sales fell by 2.4% earlier this spring and were down by 22% from last year.
The Cedarburg housing market veers from the national housing market statistics, however. For sellers, the median sales price for a three-bedroom home increased by 31.8% from March to April. With an 11% population growth in the past two decades, one of the higher Wisconsin population increases, homes typically sell quickly and over the asking price. The swift buying and selling of homes is due in part to the experienced agents in the area, like those of the Sewart Group.
Will we ever be able to afford a house?
The quick answer is yes! Of course, there are factors both controllable and those out of one’s hands. Building up good credit by paying off credit card debt and paying bills on time is one way to uplevel your buying power. Saving up money to make a more significant down payment, thus lowering monthly interest rates on a home mortgage, is another. Fortunately, the marketing outlook is promising for lower mortgage rates, and a less drastic housing price increase certainly helps, too.
On the other hand, no one could have predicted the world would face a global pandemic that would shake the market up so much. Neither could anyone control the erratic events of the banking system. At least for now, though, the housing market seems to have steadied, and both buyers and sellers should see an uptick in house sales movement in 2024.
Whether you are selling your home, looking for a first-time property, or interested in investment real estate, you do not have to go through it alone. Your trusted local Realtor has the expertise and experience to help you navigate the sometimes overwhelming Cedarburg housing market and answer all your real estate questions. If you wish to build your real estate portfolio or are in the market to buy or sell a Cedarburg home, contact the Sewart Group today to get started.
*Header photo courtesy of Shutterstock