In the world of real estate, home affordability plays a pivotal role for prospective buyers! So are things looking up in 2024? Keep reading to find out.
The equation typically hinges on three crucial factors: mortgage rates, home prices, and wages. So, let’s delve into the dynamics of 2024! There’s some heartening news for those looking to step into the real estate market: affordability is on the rise.
Mortgage Rates Decreasing
One of the key drivers of home affordability is mortgage rates! Fortunately, the trend is currently in favor of potential buyers. Why is this? Simply put, rates have eased off from their recent peaks. In October 2023, rates peaked at 7.79%. However, today the average rate is 6.69%. Thus, now is a more attractive time to secure a loan for your dream home!
Home Appreciation is Slowing Down
Another pivotal component of the affordability equation is home prices. In 2024, experts predict a notable shift in this aspect. The pace of home price appreciation is projected to slow down. This deceleration offers a silver lining for prospective buyers. Basically, the gap between a buyer’s savings and the cost of a home may be shrinking. What does this mean? Some buyers may not have to put as much down to buy their dream home.
Wages Are Growing
When it comes to affordability, the third key player is wage growth. This year, wages are on an upward trajectory! Not only that, the growth trend is surpassing its usual pace. Are you familiar with an index measuring the total amount of money paid to all workers in the private sector? This index has seen significant weekly changes recently. This positive shift in income levels is excellent news. In short, buyers looking to own a home may be getting more income to make it happen.
In summary, the stars seem to be aligning for those aspiring to become homeowners in 2024. First, mortgage rates are in a favorable position. Second, home price appreciation is slowing down. Third, wages are increasing at an accelerated rate. These promising trends contribute to an improved landscape of affordability for buyers!
If you’ve been contemplating buying, 2024 might just be the perfect time to take that leap. With improving affordability conditions, your dream home may be closer than you think! Don’t miss out on this opportunity to embark on your homeownership journey this year. Reach out to your local Surterre real estate specialist at SurterreProperties.com today to explore the available options and make your dream home a reality.