Looks like 2024 is going to be an interesting year with some unexpected twists and exciting developments in the housing market. We have seen intense times before, but 2024 is shaping to be a year of new beginnings and exciting opportunities for those planning a home purchase in LA.
In this blog, I’ll walk you through everything from fluctuating mortgage rates to the ever-changing housing market dynamics. Whether you are planning to buy your first home or simply curious about the current state of real estate, you are at the right place. So, let’s look at what 2024 has up its sleeve!
There’s hope for the 2024 housing market
Let’s be honest: the 2023 housing market was all over the place. Those sky-high prices and interest rates had us all biting our nails. The good news, though, is that the experts at Realtor.com are hinting at some small but meaningful changes in the housing market in 2024. Those elusive mortgage rates are now finally starting to ease up.
So, what’s exactly changing?
Well, interest rates are expected to take a slight dip. I’m talking an average rate of 6.8% throughout the year, and if we are lucky, we might see them down to 6.5% by the end of 2024. To put it in perspective, rates were floating around 4% from 2013 to 2019 before shooting up to an extreme 7.79% recently.
But don’t celebrate just yet. The cost of buying a home is still high, accounting for around 35% of the average US household income. The typical monthly cost for an average home is expected to inch down from $2,240 to $2,200. Sure, it’s not a huge drop, but every penny saved is a penny earned.
Home buying in 2024
Who’s buying and why?
If you are considering buying a home in 2024, you have plenty of company. These are mostly people moving for job reasons, adapting to family changes, or those searching for a more budget-friendly lifestyle. The main thing to remember is that real-life needs are pushing people into the market.
The reality check
Don’t expect a miraculous return to the days of super-low prices and interest rates. If inflation decides to return, the housing market could take another hit. You need to find that sweet spot.
Good news for renters
If you are renting, there’s a silver lining for you, too. More houses are being built, which means more options for you. But renting is still going to be easier on the wallet than buying. But beware—with more options might come more competition for those rentals. And don’t expect a huge fall in rent prices. It will only be a slight dip of about 0.2%.
My Final Thoughts
Here are my two cents as an experienced LA realtor—stay informed, be realistic, and consider the why and when if you want to buy. The 2024 housing market is starting to look more welcoming, but expect some bumps along the road. And remember, whether you are looking to buy or rent in LA, I’m here to guide you in the right direction.
