As we close out another remarkable year in real estate, I want to share my thoughts on how 2024's housing market predictions have played out. Let's dive into what we expected versus what actually happened.
The Inventory Squeeze Continues
Everyone was hoping for more homes to hit the market this year, but that didn't quite materialize. In our market, we're still seeing just 2-3 months of inventory. To put that in perspective, we really need 4-6 months for a balanced market. Translation? Sellers are still in the driver's seat for the most part.
Price Tags Keep Climbing
The experts at the National Association of Realtors predicted a modest 1.4% bump in single-family home prices. But guess what? We've actually seen prices jump by 3.4% through October. If you're a homeowner, you're probably smiling right now, because your property value likely exceeded expectations.
The Mortgage Rate Dance
The experts were fairly close on this one. They called for rates around 6.5% by year's end, and here we are, floating between 6.5% and 7%. Some of my savvier clients have even locked in rates in the low 6% range for their 30-year mortgages. Not too shabby, considering where we've been.
How We're All Adapting
The market's definitely taught us some new moves this year. Buyers are doing their homework more thoroughly (as they should), and sellers are getting real about pricing strategies. Single family homes in Minneapolis are taking an average of 39 days to sell now, and we're seeing a bit more negotiation room in final sale prices. Still, with a 4% growth in sale prices, the market's still got plenty of muscle.
The Big Picture
Looking back, 2024 has been fairly stable and all about finding our footing in this new normal. Sure, we're still wrestling with affordability issues and that persistent inventory shortage, but the dream of homeownership? Still going strong. People are just getting more creative about making it happen.
Ready to make your move in this market? Let's chat! Whether you're thinking about buying or selling, I'd love to help you navigate these waters and turn your real estate dreams into reality.
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