As We Look To 2024...

As we approach the end of 2023, the thought of buying or selling a home in 2024 naturally sparks curiosity about what lies ahead in the market.

While I don't have a crystal ball, our observations reveal a trend that economists have long acknowledged: real estate tends to appreciate over time. Looking back, residential real estate has typically experienced an annual increase of 5-7%, with few exceptions.

Here in Denver, the limited availability of homes continues to favor sellers who strategically price their homes in line with market conditions. For prospective buyers, opportunities exist, but patience and diligence are key in finding the perfect home.

As we step into 2024, economists are keeping a close eye on three pivotal indicators:

1. **Interest Rates:**

Even a one percent fluctuation can drastically impact a homebuyer's monthly payment over the life of the loan. Signals from a recent Wall Street Journal article suggest that rates might stabilize or decrease due to trends, including a slowdown in inflation. While some rumors point toward rates being in the 4% range, it is more likely we see a drop around 5%/6%. 

2. **Available Homes:**

Many markets still grapple with historically low inventory as homeowners choose to stay put, particularly considering the favorable interest rates they currently enjoy. Economists predict that this scarcity will continue to pose challenges for buyers in 2024.

3. **New Home Construction:**

Recent data highlights a rise in single-family home starts, indicating increased construction activity. However, this growth varies by region. Builders are working to rebound from pandemic-related supply shortages, and in Colorado, they're navigating pending increases in property taxes.

My perspective? Three enduring principles hold true:

1. **People Will Move:**

Real estate transactions will continue in 2024.

2. **Home Prices Appreciate:**

Over time, home prices tend to increase.

3. **Strategic Approach Matters:**

Having a plan and a reliable partner in real estate endeavors is crucial.

As you consider your options for buying, selling, or investing in a home in 2024, remember that it's a personal decision. Armed with insights into market trends and advice from trusted advisors, you can harness the power of real estate to fortify your financial future. 

Cheers to a Bright New Year! 🎉 Here's to new beginnings, fresh opportunities, and endless possibilities!  As we dive into 2024, remember, I'm just a message away for anything you need. Let's make this year extraordinary together! Happy New Year!