This is what you can expect from the real estate market in 2024.
Reflecting on the past year’s real estate trends provides valuable insight into what lies ahead in 2024. That’s why today I’ll go over some of the dominant trends in 2023’s housing market so we can better understand where the market is heading next year.
In the past year, we closed over 3300 homes in the western Yavapai County multiple listing system, a decrease from over 4000 in 2022 and over 4800 in 2021. This decline in sales can be directly linked to interest rates and affordability. Also as interest rates rise, affordability decreases by 10% for buyers using financing. Over the past five years, with fluctuating interest rates, there’s been a consistent correlation: a 10% drop in home sales corresponds to a 10% to 15% decrease in affordability.
Looking ahead, I anticipate a slight decrease in rates, possibly reaching the high fives or around 6% by the year’s end. A 1% drop in rates could mean a 10% increase in affordability, potentially resulting in a 10% to 15% rise in home sales in our market area, estimating 3600 to 3800 sales this year.
This increase in affordability is positive news for sellers, as more buyers may be interested in purchasing their homes. Additionally, for buyers, this implies improved affordability in terms of mortgages and purchasing power.
Whatever market we may be in, we continue to invest in services, tools, and resources to enhance the overall homeownership experience. Our new partnership with Envoy Mortgage offers additional valuable tools and resources. We aim to provide you with more than just a sales transaction and are dedicated to serving you better.
With a team of ten in the Prescott market and six in Phoenix, we are committed to assisting you. Our network extends across the U.S. and into Canada, ensuring our availability wherever you or your family and friends may need assistance. Please don’t hesitate to call or email us with any inquiries or how we can assist you.
