New data shows home prices across America increased 5.5% last year – the highest level of value growth since January 2023.
Industry researcher CoreLogic also says owners can expect steady value growth moving forward with an increase of 2.8% projected in the 12 months to December 2024.
These results return the real estate market back to the pre-pandemic average of around 4% after a pandemic-fuelled boom in 2021-22.
As an experienced real estate agent in our neighborhood, I am also seeing the market start to return to the normal behavior we enjoyed before COVID-19. This is good news for owners and buyers alike.
The last big change we are going to see in the next couple of months is a trending down of mortgage costs as inflation stabilizes after the post-pandemic spike.
Real estate was a good example of this lift. In 2022, when we were still struggling with the pandemic, prices jumped 14.5%, according to CoreLogic.
In its report, CoreLogic says the resilient job market will be the cornerstone of property value growth.
“The 2024 homebuying season should enjoy a boost because of pent-up demand, as well as a robust job market and wage growth,” it said.
Below are five tips for homeowners seeking to upgrade in the current market. It is a smart time to buy because I believe values will accelerate once the mortgage rate trends down.
For buyers, my local market knowledge means we will be able to find excellent opportunities that will deliver a wonderful home and future wealth growth.
Your budget – Don’t just consider the price. You should evaluate the cost and time of owning a larger home, plus issues such as a greater debt-to-income ratio. Shop around for the right mortgage for your situation. Don’t renew with your current lender without considering alternative providers.
Wealth driver – Evaluate how a larger home will help you meet your long-term financial goals. Will a larger mortgage have an impact on retirement savings or your general lifestyle?
Location – Never forget to explore thoroughly your location alternatives, as these have a tremendous impact on the potential value growth of your next property. And ask yourself whether the local area has the type of amenities that meet your lifestyle needs.
Features – It’s easy to get swept up in the possibilities of a bigger home. But you should pause and consider whether it offers all the features and facilities you need. Make a checklist of “must-have” and “nice-to-have” features to ensure you make the best choice.
Seek advice – With a great agent, you’ll benefit from their advice and experience. They will know the neighborhood and the anticipated value growth you can expect in the medium to long-term.
If I can help you with your property needs, please do not hesitate to contact me. We can discuss local price trends and how to maximize the value of your home.