Understanding the shifts and trends in real estate from 2023 to 2024.
As we approach the end of 2023, the real estate market has seen significant developments, setting the stage for what we can expect in 2024. Here are some key highlights and predictions:
The year is closing with declining interest rates, a positive sign for both buyers and sellers. This change follows the Federal Reserve’s decision to maintain rates, signaling control over inflation, which saw its best numbers in three years in November.
An important revelation for 2024 is Fannie Mae and Freddie Mac’s decision to disclose a previously hidden “condo blacklist”. This list identifies condos with issues, affecting potentially 37 complexes in Massachusetts. This transparency move, prompted by journalistic pressure, will significantly impact condo owners and buyers.
In Haverhill and Merrimack Valley, we’re witnessing political shifts with the departure of long-serving Mayor Jim Fiorentini. His tenure led to a real estate renaissance in the city. There’s optimism that the new leadership will continue this pro-growth trend.
Massachusetts and New Hampshire have seen prices climb steadily, though at a slower pace. In 2023, we observed a 5 to 7% increase in single-family and condo markets. The forecast for 2024 suggests steady prices with a continued drop in interest rates.
The rental market has seen a surge due to high sale prices and limited inventory. This trend is likely to continue. Interestingly, we’ve also noted a record number of cash buyers in various property categories, influenced by high interest rates. As rates decrease, we expect more competition from non-cash buyers.
Despite the challenges of rate and price increases, 2023 has been favorable for real estate. Properties on the market have sold well, benefiting sellers. Buyers have experienced slightly improved opportunities, although the market hasn’t been perfect.
As we look forward to 2024, the real estate market promises new developments and continued growth. Stay tuned for more updates, and here’s wishing you a prosperous New Year!
Remember, if you have any questions about the state of the market as we end 2023 or real estate in general, please don’t hesitate to reach out by phone or email. We are delighted to serve as your resource for all of your real estate needs.