8 Trends Currently Influencing Real Estate

1. Housing Market: Don't panic over gloomy headlines. While the housing market is adjusting after pandemic highs, it's not in a long-term slump. People waiting for prices to drop may be disappointed as data shows that's not happening across the board. There's still healthy demand.

2. Moving Trends: Americans are moving farther distances. In the past, buyers moved about 10-15 miles on average. Now, the average is around 50 miles, with various reasons like retirement, family, affordability, and remote work. They're using real estate websites for finding agents and technology for home searches.

3. Cash Buyers: Investors and property owners with cash are strong contenders, making up 26% of the market. This competes with first-time buyers who often have smaller down payments.

4. Generational Changes: The median age for first-time buyers is now 36, as younger adults face affordability challenges. Baby boomers are a big force in buying homes, making up 39% of the market, while millennials struggle due to prices and competition.

5. New Construction: Although existing inventory is low, the new-home market is thriving, constituting 20% of sales. The NAR predicts continued growth in new-home sales.

6. Home Prices: Prices have dropped 1% compared to last year, with some variations in different areas. However, overall, the decline seems to have stopped. Prices are generally higher than last year, and experts predict a 2.6% rise in 2024.

7. Mortgage Rates: Mortgage rates might cool down from their high averages, but external factors like U.S. debt ratings and Federal Reserve decisions could influence borrowing costs. Best guesses are that we’ll see the low 6% range in the next year.

8. Inventory Shortage: High demand and low housing inventory are pressing issues. Most homes sell in less than a month. Calls for tax incentives to encourage selling properties for buyers are being made to increase inventory and prevent skyrocketing prices.