Will Home Prices Become Affordable This Year? 

Everywhere you look, real estate seems to convey the same message: low inventory and demand. The spring home-buying season in 2024 has been sluggish as mortgage rates stay high, which has worsened affordability issues for many prospective buyers. The result? Home sales are stagnant when it comes to existing houses, although sales of newly built homes remain strong. The reduced demand for existing homes has helped somewhat alleviate the housing supply shortage.

Mortgage rates and home prices have continued to rise, dampening the hopes of many buyers. Despite this, Fannie Mae forecasts an increase in home sales compared to last year despite ongoing affordability challenges. Experts predict that home prices will increase at a slower rate in 2024, with regional variations depending on local market conditions.

A major development in April was the preliminary approval of a $418 million settlement involving the National Association of Realtors NAR. This settlement, set to bring significant changes to the real estate industry’s buying and selling model starting in July, will decouple the seller and buyer broker commissions in multiple listing services, which will alter the traditional practices of home buying and selling.

Overall, while the market faces several challenges, there are signs of optimism, such as the potential for increased home sales and a gradual improvement in inventory levels.

From a marketing perspective, the narrative remains strong that, since the market is unpredictable, buyers should make a purchase when they find the right home for their family – rather than waiting for the perfect marketing conditions. ASTRALCOM has an innovative plug-and-play toolkit for homebuilders who want to level up their marketing. Learn more about how you can set up simple, affordable campaigns to appeal to buyers.