Strategy is vital as market optimism emerges

Residential property sales will increase by more than 10% across America this year in a bullish sign for buyers and sellers alike, according to 2024 predictions from the National Association of Realtors.

It forecasts 4.71 million transactions, fuelled by interest rates dropping to an average of 6.3% for a 30-year, fixed-rate mortgage.

NAR believed the Federal Reserve would cut rates four times this year,a move that would give the market a much-needed stimulus.

Property transactions will increase by 13.1%, up from 4.1 million in 2023. But NAR said this deal acceleration would not result in another value spike because of current economic conditions. 

House and apartment values would stabilize with the national median home price expected to be $389,500, up 0.9% from 2023.

Anticipated income growth would outstrip any positive movement in property values, making homes more affordable. 

NAR was also positive on two other fronts: rent hikes will align with CPI after post-Covid spikes, and America will build 1.48 million new dwellings, including 1.04 million for single families and 440,000 for multi-generational needs.

If this market update has you considering your options, these tips may help you identify a personal strategy.

Identify goals

Be clear on your reasons for selling. Your motivation will inform your approach and decision-making, whether downsizing, upsizing or moving due to other factors.

Find an agent

Interview at least three candidates to find your agent. Ask family and friends for recommendations. You want someone committed and experienced with excellent communication skills and a track record of selling your style of property. 

Market conditions

You can’t control the market, but it’s a clever play to spend time understanding the trends. By selecting a great agent, you’ll receive insights to help price your existing property, negotiate its sale and purchase your next dream home.  

Your budget

Establishing your spending power is essential. Much will depend on the price you can achieve for your current home and the equity in your mortgage. Include taxes and fees from banks, lawyers and agents when costing everything.

Fix it

You may have to spend a little cash to fix any maintenance issues, especially if you’re selling a house. The property sale price will likely be adversely affected if problems are ignored.