In the ever-evolving real estate industry, staying updated with the latest news is crucial for industry professionals, homeowners, buyers, and investors alike. Looking ahead to 2024, several key topics have emerged that are anticipated to significantly shape the trajectory of the real estate market. These include fluctuations in home prices, shifts in home sales and affordability, and the growing influence of property technology (Proptech). In this section, I will delve into each of these trending topics, providing an overview grounded in credible industry reports, surveys, and expert interviews. My aim is to equip you with the insights needed to effectively navigate the real estate landscape in 2024.
Fluctuating Home Prices:
According to Bankrate and Forbes, the volatility of the housing market is a significant talking point. Some markets are seeing declining home prices, while others are experiencing increases. This dichotomy is causing uncertainty and is expected to be a focal point in 2024. The trend of fluctuating home prices is supported by data from REALTOR®.com.com, which predicts a slight drop in home prices for the year, averaging less than 2%.
Shifts in Home Sales and Affordability:
The National Association of REALTORS® (NAR) and Bright MLS predict a turnaround in home sales in 2024. With the average 30-year fixed-rate mortgage predicted to be around 6.3%-6.5%, housing affordability might improve, leading to an increase in home sales. NAR predicts about 500,000 more sales than in 2023, a gain of 12.1%.On the other hand, the rental market is becoming a significant contributor, offering renters more options and reduced competition. Consequently, in 2024, the focus will shift towards the rental market, providing a lifeline for individuals in need of housing as well as those involved in the housing market.
The Emergence of Proptech:
HousingWire highlights the emergence of Proptech as a significant trend reshaping the real estate market. Proptech, or property technology, includes digital and technological innovations in the real estate industry designed to streamline and enhance real estate processes. Throughout the year, we can expect a strategic shift in business models, with a focus on expanding product offerings and investing in consumer education to effectively navigate the housing market slowdown.
The real estate industry is on the cusp of transformative changes in 2024. These shifts are fueled by the convergence of technological advancements, evolving consumer behaviors, and shifting market dynamics. These influential factors are expected to dominate conversations and shape the industry's trajectory in the coming year.
