Market Report

Slow and Steady Wins The Race: Housing Market Forecast 2024

Looking back on last year’s forecast, I was optimistic that conditions would improve for buyers. They have…but only after they worsened due to government actions. Curbing inflation amid a spendthrift culture has been a slooooow balancing act that we expect will continue through 2024. The questions that I hear regularly are whether prices or rates are coming down, and inherent in those questions is if people should wait to make a move. Defining what is most important to your lifestyle is critical when making big financial decisions. Having these yearly forecasts, where I review and evaluate the top economists’ projections for the year ahead and compare them to our local market, helps people prepare for their right opportunity and achieve their important goals.

There are no indications that home prices will decline, since we still have strong demand and declining inventory, but there won’t be double-digit appreciation as has been the case locally. In 2023, appreciation was 5.9%, whereas the yearly national average is 2-3%. This year we have seen slower sales in homes that aren’t in premium condition, including longer time on the market and price reductions. We have also been able to secure more home inspections than we were in 2022. This is good news for buyers and also means that sellers need to consider condition more than they have through the pandemic. Nationally, 6.5% of listings have sold less than asking price in 2023. However the inverse case is that 93.5% of homes sold at list price or higher, and 32% of those sold ABOVE list price. Most housing experts predict home price appreciation to reach 2.4% in 2024 and 2.7% in 2025. So prices will continue to rise but not as dramatically. Locally, Norfolk, Virginia Beach, and Suffolk have seen stronger appreciation, which means buying opportunities are going to be better in Portsmouth and Chesapeake. Throughout the country, we will see millennials making geographical...

A Sea of Opportunity in 2023: Housing Market Forecast

I am truly excited about the real estate market in the coming year! The last couple of years have been wonderful for sellers, who saw multiple offers on homes they didn't even have to make an effort in preparing, and had little to no home repairs requested. On the flip side, it has been just devastating for buyers, who watched as prices exploded into double digit territory and interest rates tripled. Inflation hit a 40 year high and home sales hit their lowest level since 2014. Construction costs are still 14% higher due to persistent supply chain issues. It has led us into a holding pattern for many buyers wishing to invest in real estate. 

As the principle driver of home sales, the increase in mortgage rates exascerbated the shortage of available homes, as move-up buyers have been holding onto their first homes' low rates. The millennial generation are at a peak of their first-time home purchase years, and have been widely side-lined by the above conditions. As rates are expected to stabilize in 2023, I expect this dam to ease. Prices have already slowed but homes are continuing to appreciate. I am excited to see both buyers and sellers scoring wins this coming year!

Real estate is hyper-local, so knowing the conditions as close to your market as possible is critical in making good decisions on buying and selling. As most of my readers know, I review numbers in my dominant market, Southside Hampton Roads, as well as the wider 7 cities including the Peninsula, and evaluate trends in Virginia and the country each month. When preparing a client for buying/selling, this evaluation will zoom in on their market with a microscope. Being able to provide this high level of insight to my clients has allowed them to achieve the success they desire in their property investment choices. I look forward to providing the same to you and yours. Please keep an eye out for my videos on YouTube and Facebook this year, as I continue to provide information that I believe...