Opening Doors for Homebuyers in 2024

It's no secret that the past year has been tough for homebuyers. If you've started searching for a home but paused because the market felt too challenging, you're not alone. A Bright MLS study found that some of the top reasons buyers halted their search in late 2023 and early 2024 were:

- They couldn’t find anything in their price range

- They didn’t have any successful offers or had difficulty competing

- They couldn’t find the right home

If these reasons sound familiar, here's what you need to know: the housing market is transitioning in the second half of 2024. Here are four reasons why now might be a great time to resume your home search.

1. The Supply of Homes for Sale Is Growing

One of the biggest changes this year is the increase in the months’ supply of homes for sale. According to data from the National Association of Realtors (NAR), inventory has grown throughout 2024:

This graph shows the months’ supply of existing homes – homes that have previously been lived in. The upward trend this year is clear.

This increase means you have a better chance of finding a home that suits your needs and preferences. If difficulty finding the right home was your main obstacle, this is a big relief.

2. There’s More New Home Construction

If existing homes aren't appealing, consider the rise in new home construction. Builders have increased the supply of newly built homes this year, focusing on smaller, more affordable options to meet current market demands. This addresses the long-standing issue of housing undersupply and helps with affordability challenges.

Data from the Census and NAR show that one in three homes on the market is newly built:

If you haven’t considered newly built homes, you might have missed out on a significant portion of available options. Additionally, some builders offer incentives like buying down mortgage rates, making it easier to find a home within your budget.

Talk to your agent about what builders offer in your area. Their expertise on builder reputations, contracts, and more will help you make an informed decision.

3. Less Buyer Competition

With mortgage rates still around 7%, buyer demand isn't as intense as before. Combined with increased housing supply, this means you have a better chance of avoiding bidding wars. Danielle Hale, Chief Economist at Realtor.com, highlights the positive trend for the latter half of 2024:

“Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”

This creates a unique opportunity to find a home with less stress and potentially a better price.

4. Home Prices Are Moderating

Home prices are showing signs of moderation after the rapid appreciation of recent years:

This moderation results from growing supply and easing demand, so prices aren’t rising as fast. The average forecast for home price appreciation in 2024 is around 3% to 5%, aligning more with historical norms. This means you're less likely to face steep price increases.

The Opportunity in Front of You

If you’re ready and able to buy, the second half of 2024 might be easier to navigate. Some of the biggest hurdles are improving as time goes on.

However, if you choose to wait, you risk increased competition as more buyers recognize the market shift. Also, if mortgage rates decrease, more buyers will flood back into the market. Moving now helps you take advantage of current conditions and get ahead of other buyers.

Bottom Line

If you've paused your dream of homeownership, the second half of 2024 might be the right time to jump back in. Connect with a Rucker and Associates Real Estate Agent to discuss the opportunities available in today’s market.