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Top Real Estate Trends to Watch in 2024
Whether you're shopping for Richmond homes for sale or planning to sell a home in 2024, it can be very insightful to look ahead to what you might be able to expect from market trends in the coming year. While nobody can predict exactly what will happen, past trends and current data can help paint a picture of what we might be able to expect from housing markets in 2024. Our REALTORS® have more on some of the trends that you might see in real estate markets for 2024.
- Analyzing the Past to Anticipate the Future
One way to get a hint about what might happen in 2024 is to take a close look at the recent data from 2023. The NAR Research and Statistics page is an excellent place to find a wealth of information on market trends. For example, the 2023 median sales price of $391,800 was a 3.4 percent increase over the prior year, while the total number of sales, at 3.79 million, was down 14.6 percent compared to the previous year. As of October 2023, the nationwide inventory of 3.6 months was an increase of .3 months compared to the previous year.
Specific to the Richmond area, though:
- 2023 Richmond median home sales price - $367,850
- 2022 Richmond median home sales price - $339,500
- This is an 8.35% increase from 2022 to 2023.
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So, What Does Last Year's Data Tell Us?
In general, across most locations, much of 2023 took place in a seller's market. Home prices rose, inventory rose but stayed relatively low, and the number of sales decreased compared to the prior year. The low level of inventory, of course, is key to a seller's market, and inventory remains relatively low as we turn to 2024. There were also outside economic factors that impacted mortgage rates, which ultimately tempered the enthusiasm of some buyers for purchasing a home in 2023. -
What Factors Impacted Buyers?
The Federal Reserve has raised interest rates a number of times over the last year, in order to combat rising inflation. While inflation has been going down, the higher-than-usual interest rates have a real impact on the loan terms that buyers can expect to receive. Mortgage companies take their cues on rates from the Fed, and since the economy is performing well overall it's likely that high interest rates will continue for the near future. -
Higher Home Prices Are Another Key Factor
Another factor that's kept some buyers from diving into the market is that home prices have simply gotten higher in many places. While the rise in home prices hasn't been massive, it's been noticeable and certainly enough, when combined with higher interest rates, to discourage some buyers from shopping for homes. However, since inventory is fairly low, sellers may maintain the upper hand in 2024. Buyers are competing for a smaller number of homes and may need to pay more than usual to secure their desired choice. -
What Could Change Expectations in 2024?
For now, 2024 is looking like a continuation of the trends from 2023, according to many analysts. What could change that? The biggest thing would be rate drops from the Fed, which could ultimately spur significantly more action from both buyers and sellers who've been sitting on the sidelines. Outside of interest rates, any major changes to the overall economy also tend to impact the real estate industry, as well.
No matter where the trends go, one fact remains the same – your life is much easier with the right real estate agent on your side. Our team would love to help you accomplish your real estate goals this year. Contact us to buy and sell homes in the Richmond, VA area.
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