Unlocking Homebuyer Opportunities in 2024

<article class="post-1125384 post type-post status-publish format-standard has-post-thumbnail hentry" id="post-1125384"><span class="entry-date">July 18, 2024</span><div class="entry-header center-block text-center"><h1 class="entry-title">Unlocking Homebuyer Opportunities in 2024</h1><div class="shareBlock"><div class="shareTitle">Share</div><div class="shareIcons"><a aria-label="Twitter Share Link" class="twitter solid display-inline-block" data-tracking="Post,Social Post Link Clicked,Twitter" href="http://twitter.com/share?text=Unlocking+Homebuyer+Opportunities+in+2024&url=https%3A%2F%2Fgilliggroup.com%2Fblog%2Funlocking-homebuyer-opportunities-in-2024%2F" target="_blank"><span class="force-hidden">Twitter</span></a>
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</div></div><div class="post-tax post-category"><span></span><a href="../category/realtor-blog/index.html" rel="tag">Realtor Blog</a></div><div class="post-tax post-post_tag"></div></div><div class="entry-content"><div><img alt="Unlocking Homebuyer Opportunities in 2024 Simplifying The Market" decoding="async" loading="lazy" src="https://media.agentaprd.com/sites/222/20240718-Unlocking-Homebuyer-Opportunities-in-2024-original.webp" style="display: block; margin-bottom: 5px; clear: both; max-width: 100%;" width=""/>
<p>There’s no arguing this past year has been difficult for <a href="https://www.simplifyingthemarket.com/2024/06/11/savings-strategies-every-first-time-homebuyer-needs-to-know/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homebuyers</a>. And if you’re someone who has started the process of searching for a home, maybe you put your search on hold because the challenges in today’s <a href="https://www.simplifyingthemarket.com/2024/06/17/do-elections-impact-the-housing-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">market</a> felt like too much to tackle. You’re not alone in that. A <em>Bright MLS</em> <a href="https://www.brightmls.com/article/market-survey-sellers-increasingly-offering-concessions-to-close-the-deal" rel="noopener noreferrer" target="_blank">study</a> found some of the top reasons buyers paused their search in late 2023 and early 2024 were:</p>
<ul>
<li>They couldn’t find anything in their price range</li>
<li>They didn’t have any successful offers or had difficulty competing</li>
<li>They couldn’t find the right home</li>
</ul>
<p>If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the <a href="https://www.simplifyingthemarket.com/2024/06/28/housing-market-forecast-for-the-2nd-half-of-2024-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">second half of 2024</a>. Here are four reasons why this may be your chance to jump back in.</p>
<h4><strong>1. The Supply of Homes for Sale Is Growing</strong></h4>
<p>One of the most significant shifts in the market this year is how the months’ supply of <a href="https://www.simplifyingthemarket.com/2024/05/16/the-number-of-homes-for-sale-is-increasing/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">homes for sale</a> has increased. If you look at <a href="https://www.nar.realtor/topics/existing-home-sales" rel="noopener noreferrer" target="_blank">data</a> from the <em>National Association of Realtors </em>(NAR), you’ll see how inventory has grown throughout 2024 (<em>see graph below</em>): <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240711/20240718-Inventory-of-Existing-Homes-Improving-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240711/20240718-Inventory-of-Existing-Homes-Improving-original.png"/></a></p>
<p></p>
<p>This graph shows the months’ supply of existing homes – homes that were previously lived in by another homeowner. The upward trend this year is clear.</p>
<p>This increase means you have a better chance of finding a home that suits your needs and preferences. And if the biggest reason you put off your home search was difficulty finding the right home, this is a big relief.</p>
<h4><strong>2. There’s More New Home Construction</strong></h4>
<p>And if you still don’t see an existing home you like, another big opportunity lies in the rise of <a href="https://www.simplifyingthemarket.com/2024/06/13/homebuilders-arent-overbuilding-theyre-catching-up/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">new home construction</a>. Builders have worked to increase the supply of <a href="https://www.simplifyingthemarket.com/2024/07/08/not-a-crash-3-graphs-that-show-how-todays-inventory-differs-from-2008/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">newly built homes</a> this year. And they’ve turned their attention to crafting <a href="https://www.simplifyingthemarket.com/2024/05/03/builders-are-building-smaller-homes-infographic-1/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">smaller</a>, more affordable homes based on what’s most needed in today’s market. This helps address the long-standing issue of housing undersupply throughout the country, and those smaller homes also offset some of the affordability challenges you’re feeling today.</p>
<p>According to data from the <a href="https://www.census.gov/housing/hvs/data/histtabs.html" rel="noopener noreferrer" target="_blank"><em>Census</em></a> and <a href="https://www.nar.realtor/research-and-statistics/housing-statistics/existing-home-sales" rel="noopener noreferrer" target="_blank">NAR</a>, one in three homes on the market is a newly built home (<em>see graph below</em>):<a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240711/20240718-Today-1-in-3-Homes-Are-New-Construction-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240711/20240718-Today-1-in-3-Homes-Are-New-Construction-original.png"/></a></p>
<p></p>
<p>This means, that if you didn’t previously look at <a href="https://www.simplifyingthemarket.com/2024/05/09/the-top-2-reasons-to-consider-a-newly-built-home/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">newly built homes</a> as part of your search, you may have been cutting your pool of options by a third. Not to mention, some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home that fits their budget.</p>
<p>So, consider talking to your agent about what builders have to offer in your area. Your agent’s expertise on builder reputations, contracts, and more will help you weigh your options.</p>
<h4><strong>3. Less Buyer Competition </strong></h4>
<p><a href="https://www.simplifyingthemarket.com/2024/04/23/the-best-way-to-keep-track-of-mortgage-rate-trends/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">Mortgage rates</a> are still hovering around 7%, so buyer demand isn’t as fierce as it once was. And when you combine that with more housing supply, you have a better chance of avoiding an intense bidding war. Danielle Hale, Chief Economist at <em>Realtor.com</em>, highlights the positive trend for the latter half of 2024, <a href="https://www.realtor.com/research/existing-home-sales-may-2024/" rel="noopener noreferrer" target="_blank">saying</a>:</p>
<blockquote><p><em>“</em><strong><em>Home shoppers who persist could see better conditions in the second half of the year</em></strong><em>, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”</em></p></blockquote>
<p>This creates a unique opportunity for you to find a home you want to buy with less stress and at a potentially better price.</p>
<h4><strong>4. Home Prices Are Moderating</strong></h4>
<p>Speaking of prices, <a href="https://www.simplifyingthemarket.com/2024/06/12/home-prices-arent-declining-but-headlines-might-make-you-think-they-are/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home prices</a> are also showing signs of moderation – and that’s a welcome shift after the rapid appreciation seen in recent years (<em>see graph below</em>): <a href="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240711/20240718-Home-Prices-Are-Moderating-original.png" rel="noopener noreferrer" target="_blank"><img alt="No Caption Received" decoding="async" src="https://files.keepingcurrentmatters.com/KeepingCurrentMatters/content/images/20240711/20240718-Home-Prices-Are-Moderating-original.png"/></a></p>
<p></p>
<p>This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. But make no mistake, that doesn’t mean prices are falling – they’re just <a href="https://www.simplifyingthemarket.com/2024/06/26/focus-on-time-in-the-market-not-timing-the-market/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">rising</a> at a more normal pace. You can see this in the graph. The bars are still showing prices increasing, just not as dramatic as it was before.</p>
<p>The average forecast for <a href="https://www.simplifyingthemarket.com/2024/05/13/home-prices-are-climbing-in-these-top-cities/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">home price appreciation</a> in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. That moderation means that you are less likely to face the steep price increases we saw a few years ago.</p>
<h4><strong>The Opportunity in Front of You</strong></h4>
<p>If you’re ready and able <a href="https://www.simplifyingthemarket.com/2024/04/19/myths-about-the-2024-housing-market-infographic/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">to buy</a>, you may find that the <a href="https://www.simplifyingthemarket.com/2024/06/24/housing-market-forecast-whats-ahead-for-the-2nd-half-of-2024/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">second half of 2024</a> is a bit easier to navigate. There are still challenges, but some of the biggest hurdles you’ve faced are getting better as time wears on.</p>
<p>On the other hand, you could choose to wait. But if you do, here’s <a href="https://www.simplifyingthemarket.com/2024/05/30/the-biggest-mistakes-buyers-are-making-today/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">the risk</a> you run. As more buyers recognize the shift in the market, competition will grow again. On a similar note, if <a href="https://www.simplifyingthemarket.com/2024/06/18/worried-about-mortgage-rates-control-the-controllables/?a=712984-fa409495d5d70154d03a25e81e9540e2" rel="noopener noreferrer" target="_blank">mortgage rates</a> do come down (as forecasts say), more buyers will flood back into the market. So, making a move now helps you take advantage of the current market conditions and get ahead of those other buyers.</p>
<h3>Bottom Line</h3>
<p>If you’ve put your dream of homeownership on hold, the second half of 2024 may be your chance to jump back in. Connect with a real estate agent to talk more about the opportunities you have in today’s market.</p>
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