In the world of real estate, home affordability plays a pivotal role for prospective buyers!
So are things looking up in 2024?..... Keep reading to find out.
The equation for entering the real estate market often rests on three pivotal factors:
mortgage rates, home prices, and wages.
And here's some uplifting news for those considering stepping into real estate....affordability is making a come back!
Mortgage Rates on the Decline
One of the primary influencers of home affordability is mortgage rates, and currently, the trend is in favor of potential buyers. Why? Simply put, rates have softened from their recent highs. In October 2023, rates peaked at 7.79%, but today, the average rate sits at 6.69%. Consequently, now presents a more appealing time to secure a loan for your dream home and remember, you can't buy tomorrow's home at today's prices. Or as the as the old adagae goes "Marry the home and date the rate"!
Slowing Home Appreciation
Another critical aspect of affordability is home prices, and in 2024, experts anticipate a significant change in this area. The pace of home price appreciation is expected to slow down, offering a glimmer of hope for prospective buyers. Essentially, the gap between a buyer’s savings and the cost of a home may be narrowing. So what does this mean? Some buyers might not need to put down as much to acquire their dream home.
Rising Wages
The third key player in affordability is wage growth, and this year, wages are climbing! Moreover, the growth trend is outpacing its usual speed. The index measuring the total amount of money paid to all workers in the private sector has seen notable weekly changes recently. This positive shift in income levels is fantastic news. In essence, buyers aspiring to own a home may find themselves with more income to make their dreams a reality.
In conclusion, it seems like everything is falling into place for those aiming to become homeowners in 2024. Firstly, mortgage rates are favorable. Secondly, home price appreciation is decelerating. Thirdly, wages are increasing at an accelerated pace. These promising trends contribute to an enhanced landscape of affordability for buyers!
Thinking about making a purchase? Now's the time to act!
With improving affordability, your dream home could be within reach. Don't wait any longer - seize this opportunity to start your journey to homeownership in 2024. Contact Gary Macrides, your local real estate specialist at GaryMacrides.com today to discover your options and turn your dream home into a reality.