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Market Update - Feb 2024

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Market Update - Feb 2024

It remains a near-impossible task to accurately predict the future of the housing market, as experts re-evaluate their expectations each year. Last year, there were worries of a “mini-crash” which never materialized. Interest rates have dropped off of their high faster than many anticipated. Inventory, however, has yet to recover to pre-pandemic levels.
INTEREST RATES: The drop-off from the peak seen in October last year is great news for those re-entering the buyer’s market. They have plateaued for several weeks now, though most experts agree that they will continue to drop. Fannie Mae forecasts that they will drop to 5.8% by the end of 2024.
INVENTORY: This chart shows the stark difference in the yearly inventory cycle pre- and post-pandemic, about a 30-40% decrease year over year. It is easy to see where all the competition over listings comes from! But, people will always need to move for work or personal reasons outside of market conditions, which will break up the gridlock.
FIRST-TIME BUYERS: These factors, along with others, have negatively impacted the ability of a potential first-time buyer to purchase. We strongly believe that everyone deserves to realize the dream of homeownership – if you are considering becoming a first-time buyer, we will assist you to the best of our abilities in overcoming such obstacles!