Experts weigh in on what to expect out of the real estate market in 2024
PHILADELPHIA (WPVI) -- The real estate market was bleak last year due to mortgage rates hitting a 20-year high, persistently low inventory, and rising home prices. So what will 2024 bring and what does that mean for buyers?
Nationally in 2023 about 3.9 million homes sold, when usually that number is about 6 million.
But rates have been falling every week since October. They're now about 6.6% and the number of homes for sale is going up. Experts are optimistic this will be a better year.
"The market affects me tremendously," said Philadelphia investor Sheldon Grant.
Grant buys a lot of homes as an investor. His approach to buying is different from a regular home buyer's but he feels the market's impact just the same.
"Prices are still high," he said. "For the last year or so, there's been less inventory than before."
Grant doesn't expect significant change any time soon.
"Prices will remain elevated, and the competition will remain stiff," he said.
When you look at the entire metro market, prices went up 6% from an average of $389,000 in 2022 to $412,000 in 2023.
The largest gains were in Chester, Montgomery, Burlington, Camden, and Mercer counties.
While in Philadelphia County, the average home price went down 3% from $314,000 in 2022 to $304,000 in 2023.
"I think that this year, the prices will remain pretty firm. They may rise a tad bit," said RE/MAX @ Home real estate agent Maria Quattrone.
As for supply:
"We've seen supply inching up over the last several months," she said.
Quattrone says some buyers can get $20,000 toward their purchase.
"There's a $10,000 grant program with one of our lenders or bankers that goes for any buyer as long as the house sits in a majority minority area. There's also the Philly first grant, that's $10,000 for first time buyers."
Real estate experts also advise that while of course, shop around for the best interest rate but also really focus on the price. After all, you can refinance for a better rate in the future but you can't change the purchase price.
