The housing market is very dynamic. Whether you’re a buyer, seller, or a real estate investor, entering the real estate market in 2024 requires thorough research of what’s happening right now, and an understanding of what’s to come.
Insights and expert analysis can help you understand what’s ahead and gauge whether now is a beneficial time for your endeavors. Knowledge is power and you can use this article to help you make the best moves this year!
Without further ado, attorney Ben Weaver at 23 Legal brings you the most comprehensive dive into 2024’s housing market predictions, real estate trends, and more – especially for individuals in Illinois. If you’re interested in dabbling in real estate this year, consider teaming up with Ben to navigate this complex world with ease…
Real Estate Market Trends in 2024
According to experts, here’s a summary of what we can expect the 2024 retail and commercial real estate landscape to look like.
- Economic growth will be slow in 2024.
- Commercial real estate investments are likely to see an increase post-July 2024.
- Following the popularity of hybrid work models, demand for commercial real estate is likely to remain low.
- New construction supply is likely to increase. This means good news for renters as affordability will improve.
- Interest rates will remain high and mortgage rates also have a low chance of seeing a decline.
- Commercial real estate investors will have a chance to get assets at bargaining prices, given the economic recession and soaring interest rates.
For Buyers
For aspiring homeowners, especially first-time buyers, the 2024 housing market is a challenging one, although experts expect the situation to be better than last year. In 2023, we saw high mortgage rates, high real estate prices, and even higher monthly mortgage payments. Unfortunately enough, we expect similar challenges this year.
While the situation is improving gradually, affordability will continue to be a challenge this year as well. Analysts do not expect a very bustling season for real estate this year either, especially on the buyers’ end.
Mortgage rates have fallen slightly but are still relatively high and we don’t expect a radical difference anytime soon. Demand is high as people are aspiring to invest, but the supply of homes is really low. Sellers are unwilling to sell as they stand to lose, and buyers face a limited inventory of homes with high prices.
For buyers adamant about making a move this year, we recommend knowing your financing options extremely well. With high demand and low supply, buyers willing to buy swiftly will win the competitive game! Follow our expert guide to buying your first home…
For Sellers
For sellers, 2024 will prove to be favorable as demand is high and sale prices are higher than ever. Sellers can capitalize on their bargaining power and market their homes well to sell them off quicker at competitive prices. Houses are also likely to be sold faster due to the surging demand and limited supply.
However, the increased mortgage rates make things more interesting. Sellers right now are ‘locked in’ at lower mortgage rates, which means they don’t have an incentive to sell and move to another property and face higher mortgage rates. This may reduce some homeowners’ willingness to sell unless mortgage rates fall further percentage points lower than last, which is great news for first-time buyers. Find out how you can appeal to Millennial buyers!
Sellers face a threat from new properties as new construction is increasing and will continue to increase this year. As rent becomes more affordable, sellers may face a challenge in enticing people to buy their homes instead of tuning into new construction or renting apartments.
For Investors
For investors eyeing real estate opportunities in 2024, the commercial real estate landscape is promising if they are looking to increase wealth and their portfolio. Rental demand is high and is expected to stay high, making this a valuable opportunity for investors. Due to hybrid work models, people prefer renting apartments with more bedrooms so they can conveniently work from home. Investing in these will be a wise decision for commercial real estate players.
When looking at new construction, people are looking at homes with fewer square footage and energy-efficient homes to reduce their footprint. Sustainability will continue to trend and investors can tap into it for favorable returns.
As far as the popularity of single-family homes goes, lifestyle changes have changed the trend. Higher mortgage rates mean people are leaning towards smaller homes, featuring fewer bedrooms. For developers, ranch homes will be more lucrative than townhomes and bigger family homes. Read more about running an Airbnb in Illinois!
Take Action on Your Goals in 2024 with 23 Legal!
2024 is a challenging year for everyone to navigate when it comes to housing – for buyers, sellers, and real estate investors alike. For it to be a lucrative and fruitful year for you and your family, we recommend having an experienced real estate attorney by your side to make the best choices possible.
With years of experience in the industry, he has a keen eye for valuable investments and expert insight into current trends. With 23 Legal on your side, you will not only open yourself up to new opportunities, but also experience a smooth buying/selling journey. Inspired to take action? Is the market moving in your favor? Let’s talk!
Planning to buy your first home, sell your home, or invest in real estate this year?
Ready for success? Contact us to begin your next chapter in Illinois!
Accomplish your real estate goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
