How To Prepare for the 2024 Housing Market
Written by
Yaël Bizouati-Kennedy
Edited by
Travis Woods
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
While spring is technically still a month away, spring homebuying season is already upon us. Given the current housing landscape, a new Zillow market report found that both buyers and sellers should prepare for a competitive home shopping season this spring.
This season, which starts in March, is usually one of the most popular times for the housing market — but many drivers in the current economy could affect this.
Indeed, soaring rates, low inventory — partly due to the “locked-in” effect of sellers not wanting to let go of homes they bought with much lower mortgage rates a few years back — and high prices have left many buyers and sellers on the sidelines.
For instance, 30-year mortgage rates, which had begun to decrease, ticked up again. On February 15, 2024, the 30-year average mortgage rate was 6.77%, up from 6.64% the previous week, according to Freddie Mac. To put this data in context, on February 17, 2022, the rate stood at 3.92%.
Now, Zillow found that well-priced homes are selling in 29 days, and that window will shorten quickly as the shopping season opens. Additionally, some regional markets — such as coastal and Western ones — are already heating up as spring season approaches.
So how can both sellers and buyers prepare?
Tips for Buyers
According to Zillow, just over one in five houses saw a price cut in January, which is bringing seller expectations more in line with the market conditions.
While some shoppers already touring virtually and in person might be able to negotiate a deal on a house that’s been waiting just for them, that’s likely not the case in places where median time on market for sold homes has dropped the most since last year, including Las Vegas, Nevada, Phoenix, Arizona, and Seattle, Washington.
Dutch Mendenhall, real estate investing expert and founder of RAD Diversified REIT, argued that in the current market, early engagement is key, as it allows you to act before increased competition and potential price increases later in the season.
“Start your home search early to increase the likelihood of finding well-priced properties,” he said. In addition, he recommended conducting thorough research on comparable sales, market trends and property histories.
“This information provides valuable insights for effective negotiation and helps you make informed decisions,” he added. “In a market where homes are selling quickly, there may still be opportunities to negotiate on price or terms. Consider properties that have been on the market for a longer duration as potential negotiation opportunities.”
Finally, buyers should “prepare, prepare, prepare.”
Have your mortgage pre-approval letter, know how much you can afford, work with a good advisor and be prepared to move quickly when you see the home that catches your eye, suggested Ralph Herrera, senior real estate advisor at Engel & Völkers.
He added that if you are a first-time homebuyer, remember that you may not get everything you want in your first home. “However, it is important to get on the property ladder as soon as you can, so that you can move-up in future years. Also, new construction if available in your area may be a good option.”
Tips for Sellers
Zillow noted that for sellers, it’s important to first work with an agent who understands local market conditions and will price their home correctly, and try to make their home stand out by upping its online curb appeal.
“Look at your home through the eyes of a prospective buyer — prepare the home for photography/video and make every effort to maintain a level of readiness to show,” said Nicole Beauchamp Associate Broker for Sotheby’s International Realty. “Worthwhile investments can be in staging, painting, replacing appliances. If a property needs work, price accordingly.”
In addition, some experts noted that while this is still currently a seller’s market, and that the ball is in their court in terms of negotiations and they should be prepared for bidding wars. They also should make sure that they aren’t putting their asking price too high.
“Buyers will absolutely be using home inspections to attempt to negotiate prices down as much as possible,” said Seamus Nally, CEO, TurboTenant.
Or as Marisa Simonetti, managing owner, Simonetti Real Estate Team puts it, just price the home competitively from the start. “Don’t turn into the weird uncle at the party by pricing too high, being left on the market and everyone secretly wondering what’s wrong with it.”
More From GOBankingRates
