New Year, New Home: Is it the Right Time for You?

The market presents a mixed bag of challenges and opportunities, leaving many to wonder if it is the right time to invest in a new home.

Mortgage rates are the hot topic and after hitting nearly 7% in 2022 and soaring above 8% in October 2023, they have become a major concern for potential homebuyers. However, there's a hint of optimism as we might see these rates slightly begin to relax.

Housing availability and pricing continue to be a concern as the rate of existing home sales dropped to its lowest in 13 years in October 2023. But there's a ray of hope with an uptick in single-family construction permits, suggesting a possible boost in supply. Affordability is still a major question, as home prices are still up with little signs to indicate a decrease. 

The rental market continues to evolve, becoming a key player as homeownership remains out of reach for some due to financial barriers. The construction of new rental units might ease competition and broaden choices, affecting the buy-or-rent decision. Initiatives by major mortgage players like Fannie Mae and Freddie Mac are leading this charge to include rent payments in credit histories which could influence loan approval odds.

The 2024 housing market will not be hurdle-free but with potential improvements in mortgage rates, increased home inventory, and advancements in real estate tech, it could tip the scales for some in favor of buying.