The current real estate market is challenging for both buyers and sellers, according to Business Insider. High mortgage interest rates (the highest in 23 years) coupled with home prices reaching all-time highs have hurt would-be buyers. Homeownership is now deemed unaffordable in nearly 80% of all counties. Meanwhile, sellers are having to wait longer to sell or reduce their prices.
“We are still talking about an incredibly difficult market for first-time buyers to enter, even if there’s slightly less competition,” explained National Association of Realtors deputy chief economist Jessica Lautz. “If there’s a multi-offer situation, an all-cash buyer or someone who has a lot of equity is likely to win. And that person is going to be older.”
However, the real estate market is likely to see some changes in 2024.
Home Prices Are Likely To Decrease
Redfin reported that a record number of sellers are dropping prices as continued high mortgage rates prohibit prospective buyers from purchasing homes. Almost 7% of for-sale homes posted a price drop during the four weeks ending Oct. 29, 2023, on average. This is the highest portion on record.
Despite recent drops in the average mortgage rate, this trend is expected to continue in 2024 as buyers are still facing elevated mortgage rates — and higher costs in general.
Pressure Shifting From Buyers To Sellers
After several years of inflated home prices through the COVID-19 pandemic, the burden is now starting to shift toward sellers from buyers. Sellers are going to have to be willing to slash their prices and take less of a profit to attract prospective buyers who are still squeezed by high prices and mortgage rates.
3 Ways To Maintain The Value Of Your Home
Here are three ways to maintain the value of your home in a shaky real estate market:
• Maintenance and upkeep: Regular maintenance and upkeep of your home will ensure a higher value if you choose to sell. Selling a home with issues such as a leaking roof or broken fence can decrease its value.
• Upgrades: Investing in your home is a smart way to increase its value. This could mean remodeling your bathroom, updating your kitchen, or even just repainting the walls.
• Stay informed: Do research to stay abreast of market changes and updates. If mortgage rates continue to decrease, you could have more prospective buyers and sell your home faster.
This article originally appeared on GOBankingRates.com: Real Estate 2024: How To Maintain the Value of Your Home in an Unstable Market
