Over the past year, we’ve witnessed a notable shift, but recent developments offer hope for prospective homeowners. The top 3 factors influencing this change include mortgage rates, home prices, and wages.
1. Mortgage Rates on a Favorable Decline
Recent months have seen a welcome decrease in mortgage rates, bringing a sigh of relief to us all. Experts are optimistic about mortgage rates continuing to drop this year, encouraged by strong economic performance and effective management of inflation. This decline not only enhances overall purchasing power but also makes high-end properties more accessible by reducing monthly mortgage payments.
2. Steady Growth in Home Prices
The second critical element is the trajectory of home prices. Last year we witnessed a stable increase, and this trend is expected to maintain a moderate pace in 2024. Throughout the year, inventory is expected to increase which may help with affordability early on. If you are thinking about making a move, now is the time as the increase in inventory will inevitably be met by an influx of buyers, leading to continued growth in median home prices.
3. A Positive Outlook on Wages
The third factor boosting home affordability is the rise in national incomes. Data from the Federal Reserve highlights a significant upward trend in wages, enhancing the financial capability of buyers looking to invest.
Looking at the blue-dotted trendline, you can see the rate at which wages typically rise. But on the right side of the graph, wages are above the trend line today, meaning they’re going up at a higher rate than normal.
All three major factors affecting housing affordability are improving so the real estate market is expected to pick up pace throughout 2024.
As always, we are here to provide you with personalized guidance and exclusive insights to help you navigate our local real estate market.
We are grateful to have earned #1 again in units and volume closed in 2023 on the East Shore of Lake Tahoe, Nevada with over $88,462,600 in closed sales. We contribute our success to our commitment to providing the highest quality service to our friends and clients and helping our sellers get top dollar for their property. We are constantly striving toward improving our knowledge, services, and resources and appreciate any feedback on how we can better serve you. Thank you for the opportunity to help you with your real estate needs and for your continued trust and support! The greatest compliment we could receive is for you to tell a friend. If you have any questions or if we can provide you with any services, please feel free to reach out anytime.
