The real estate market at the end of 2024 is marked by a mix of stabilization and evolving trends. Mortgage rates are hovering between 6% and 6.5%, with signs of slight declines as inflation eases. This is encouraging more buyers to consider entering the market, though affordability remains challenging in many areas.
After rapid increases in recent years, home price growth is moderating. Prices are expected to rise modestly at around 3–4% annually, with some regions experiencing stabilization. Limited housing supply still pressures prices upward in popular markets.
While housing inventory remains tight, there are slight improvements due to increased new construction and higher listing activity. However, the U.S. still faces a significant housing shortage, with a deficit of around 4.5 million homes.
Sunbelt states like Florida, Texas, and Arizona continue to thrive due to population growth and job creation. Conversely, high-cost areas like San Francisco and New York are seeing challenges, partially driven by remote work trends and affordability issues.
Emerging trends include converting office spaces into residential units, building rental-focused communities, and developing housing for seniors and healthcare facilities. AI-driven analytics and virtual tours are also transforming the market.
The market offers opportunities for buyers and investors, but affordability remains a significant barrier for many. For renters, increased demand is pushing up rental prices, especially in urban areas. Prospective buyers and investors should monitor mortgage rates and regional market conditions closely as the market adjusts.
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