Housing market predictions: Why agents say real estate in 2024 will be very different than 2023
NASHVILLE, Tenn. (WKRN) — A rollercoaster ride — that’s how experts describe what this past year’s been like in real estate. So, what’s in the cards for 2024? News 2 took a look at the housing forecast.
As we head into 2024, the economy — and therefore the housing market — faces plenty of headwinds, including inflation and high consumer credit card debt. Even with all those challenges, though, real estate agent Jeff Checko said it’s the interest rates that will really set the tone in 2024.
As long as rates hover in the 7% point range, real estate will stay stuck in neutral. However, 2024 is also an election year, which adds a new layer of complexity.
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“I think we’ll see reasonable activity through the spring and summer months,” said Checko, relocation director with The Ashton Real Estate Group of RE/MAX Advantage. “I think post-summer through the end of the year is really going to be the one that’s tough to call…They’re known for sort of pressuring the Fed to keep things at least stable and maybe even improve rates in election years to try and keep things status quo or better.”
For the investor class, early 2024 could bring two different stories, according to Checko. An individual landlord trying to finance a rental may continue facing eye-popping double digit rates, but for investors carrying cash, 2024 could be your moment!
“It’s a real time to strike for investors,” said Checko. “Now is one of those ‘cash is king’ times that you should be absolutely taking advantage of maybe even bulk purchases from builders that are really willing to just get out with their behind.”
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But what about buyers in 2024? As a relocation director, Checko works with first-time homebuyers. He sees their fear of buying at these high interest rates. However, he claims 2024 could bring lower rates, buyers flooding the market, and prices shooting right back up.
“So, if I’m a first-time homebuyer, let me say, ‘Let me not get a new car right now. Let me take care of getting this asset, even if it puts me a little uncomfortable in terms of my monthly cash flow and how I feel about it,’ because that situation could very well occur again, and now you’re getting pushed out another couple of years,” Checko explained.
As far as the hot parts of town, Checko sees the biggest potential for price spikes in Nashville’s urban core.
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