Why The First Quarter of 2024 Is The Perfect Time To List Your Home Or To Buy Your First Home

2023 was a roller coaster of a year for residential real estate.To give some context, let’s look at 2008, the height of what is now known as The Great Recession. In 2008, home prices dropped by a negative 12.7%. In stark contrast home prices increased an average of 13% in 2023.

    The problem is that new home building has dropped and we are down across the country by about 5 MM homes. This was starting to become a problem even before the Covid pandemic but the supply chain problems and difficulty even getting the most basic of products like lumber made the problem much worse. 

    Add a rising US population. Even though American birth rates were 12 babies per 1000 people in 2023, the US has a record number of foreign nationals crossing our southern border and every single one will require housing. Another driving factor is the Millennials born between 1981 and 1996. They are 72 million strong and are making a strong impact on the market.

    If you are hoping to buy a home in 2024, right now is the time to get started. In normal housing markets, American homes have appreciated in value 3% to 3.5% per year, In 2023, home prices rose 13%. With record low inventories, it is to your advantage to start building equity in a home of your own now. Interest rates can always be refinanced later when they drop, but if you miss large rises in your home’s value, you’ve missed out on that equity growth.

   As a buyer you should know that it takes an average of 56 days to close a loan on a home purchase. You need to obtain a mortgage pre-approval letter, make your offer on the property you desire, get an inspection, get your final mortgage approval and your appraisal. Don’t forget your title insurance! The typical home buyer will visit ten homes before they make an offer on the right home for their needs. I can help you get ready and organized to buy your first or next home!

     If you have been thinking of selling, consider the fact that in 2023 38.3% of homes in Michigan sold above the list price. This is the perfect time to sell and put a large amount of money in your pocket to go toward your retirement. Whether it is stocks, precious metals, collectibles or real estate, it makes a lot of sense to sell when the market is high. I would love to have a relaxed conversation with you about your real estate goals and questions and I can show you the numbers that underpin the current real estate market. Call or text me anytime at 616-301-9465 or book an appointment on my calendar for a phone call at calendly.com/tom-a9y

Tom LaVelle