Watch the original video: The Challenges with Housing Market in 2024 #realestate
The Federal Reserve has Changed It’s Stance on Inflation
Jay Powell has officially pivoted on interest rates, and we’re now predicting that rates will drop 3 times in 2024. Mortgage rates are already reacting to that news, and the average mortgage payment has dropped almost $400 in recent months . I’m anticipating that this will lead to a very competitive market in the spring of 2024, with increasing home prices.
The Big 3 When Buying a Home
One of the biggest problems we’re facing this year beyond the limited supply is that 80% of homes are at least 30 years old. Here’s the three most important options to consider when buying an older property.
1. Renovation Lending
There are specific loan products that will allow you to finance in renovations like a kitchen, bathroom or even a pool to a property when you purchase it.
2. Accessory Dwelling Units
The White House said in a press conference in October that one of their biggest priorities in 2024 will be creating financing vehicles to help people add ADU’s to their properties. ADU’s will add value to a property and allow homeowners to supplement their mortgage payment with rent. As of this month, we have multiple loan products to help people accomplish that.
3. Solar and Energy Independence
In states like California, where we have rolling blackouts during fire season solar power and energy independence becomes really desirable, but it seems out of reach for many homeowners. But there are really effective ways to get that done that many people don’t know about through the Inflation Reduction Act. These options work both for existing homeowners and new buyers.
Happy New Year.
If there is anything I can do for you or if you would like more information about the current market, please feel free to contact me. Stay tuned for more updates, and I hope you have a great 2024. Talk to you soon.