Marty and Max: 2024 Real Estate Market - Boom or Bust?
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Nationally we have higher inventory than last year with 546k single homes of the market. New listings are slightly higher than last year at this time and we have slightly more immediate sales. Remember buyers react more to a large change in rates than the actual rate itself. If rates stay the same, there is a huge buyer demand that we believe will result in a significant increase in the number of transactions.
Nothing in the metrics shows a flood of sellers that could come from investors dumping investments, job layoffs, Airbnb, etc. Falling rates mean falling inventory. In 2018 interest rates rose 100bps and inventory substantially increased. In 2021 rates fell and inventory fell.
There are so many buyers waiting for lower rates before they go shopping for a new home. If you are one of these you need to know, however, you are not alone. If rates have a huge decline there are so many others who have been clinging to this strategy for a very long time and the result very well may be much more competition, less selection, and perhaps higher prices.
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