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What You’ll Gain From Reading This Article: This article provides a 2024 real estate forecast, anticipating a positive housing market for 55+ homebuyers with declining mortgage rates and a rise in multi-family homes.
After several years of an expanding housing market, 2023 saw slow and limited growth. However, it was almost like the industry was catching its breath before the new year. As 2024 approaches, there are some things to keep in mind when homebuying. The market will experience some significant changes that could impact your home purchase. Let’s take a look at the 2024 real estate forecast and help you get ready for your 55+ homebuying journey.
2024 Real Estate Forecast: Mortgage Rates
Moving into 2024, mortgage rates will continue that gradual trend that sparked in November. Also, with rates hanging around 6.67% at the end of December, we may see rates as low as 6% in 2024.
Don’t be too surprised if the decrease in mortgage rates reaches a plateau by the third quarter of 2024. At that point, most new homes under construction will be completed, and new projects will start to reduce. Therefore, the supply of homes will shorten, which could make it more of a competitive market by the end of 2024.
2024 Real Estate Forecast: Types of Housing
The 2024 real estate forecast predicts a rise in the multi-family home trend. Many of these homes are either apartment complexes, condos, or townhomes where the maintenance on the property is minimal and shared. For 55+ homebuyers, this is great news. Single-family homes require more regular maintenance, and many 55+ homeowners desire a low-maintenance lifestyle.
2024 Real Estate Forecast: Housing Volume
Many areas that were in demand in 2023 are seeing lots of new construction. The National Association of Realtors (NAR) predicts that 4.7 million homes will be purchased in the U.S. next year. This means that if you’re looking to purchase in a particular area, you should be able to find a home or two to fit your preferences. High-demand areas will be:
These areas are attractive due to plentiful local activities, favorable weather, and active adult lifestyle options. Other areas that are seeing lots of growth from 55+ homebuyers are Southern states such as North Carolina, South Carolina, and Florida, all along the coastline where the weather is warm.
55+ Community Trends in 2024
The 2024 real estate forecast predicts that 55+ communities will continue to grow. These communities are taking into consideration the perspective of homeowners and adding more recreation options to the property. These new features are starting to develop in older developments, as well as new ones:
- Paved walkways
- Pickleball courts
- Large commercial-style gyms
Keep in mind: If you do pursue communities with amenities, you can expect to pay for these with HOA fees. The fees will be more relevant in 2024. For communities already established with these amenities, the fees may not rise, but those who are adding them to the community will likely see an increase in these costs.
The 2024 Real Estate Forecast Can Help You Prepare
If you’ve decided that 2024 is going to be your year for purchasing a home, there are a few things you need to prepare.
Keep That Credit Score High
Managing your credit between now and the time you apply for your mortgage loan is going to be the foundation for getting that great interest rate. Also, making your payments on time is vital to the health of your credit. Just a couple of missed payments will bring your score down significantly and allow the underwriters to opt for the higher interest rate when writing out your loan agreement.
No Large Purchases
The end of the year is a great time to purchase a new vehicle. But try to hold off if a new home is in your near future. When you make a large purchase, you’ll need a hard inquiry or two on your credit as well as new debt to incorporate into your monthly debt-to-income ratio.
Since we want to keep this number at 30% of your income, only make a vehicle purchase if you don’t have anything else coming out monthly. Anything over 30% will grant the underwriters a chance for that higher interest rate with the pre-approval.
Budget for HOA Fees
If you haven’t lived in a community with HOA fees before, then you may not be aware of a monthly or quarterly expense that you pay out to your community to have use of resources and keep them maintained. When you’re planning your budget, take into consideration the HOA expenses that particular community has. This is as much a responsibility as a mortgage payment, especially if something like lawn maintenance is required.
Down Payments May Be Changing
One of the hardest things about purchasing a home on a fixed income is the down payment requirement. While some homebuyers can make that happen, this can hold other buyers back from making that purchase.
New programs by government loans, state programs, and even some private companies are looking to shift that down payment requirement from 15-20% to 10%. Also, this may be more prominent by the end of 2024, as FHA loans and USDA loans are pushed harder by lenders.
Are You Ready to Buy a Home in 2024?
Overall, the 2024 real estate forecast anticipates that the housing market will have a really good year. Also, homebuyers will have homes available to choose from and decent mortgage rates that make purchasing a new home attractive.
If you need more information or want access to additional resources, feel free to contact us at 55places.com today with your questions.
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