Bottom Line

The real estate market is currently experiencing a period of transition, characterized by decreasing mortgage rates, rising home prices, and an increasing number of homes for sale. These dynamics present both challenges and opportunities for buyers. Engaging with a housing market expert at EBRSavannah can provide valuable guidance tailored to individual needs and local market conditions, ensuring well-informed decision-making during the home-buying process.

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1. Mortgage Rates

• Current Trend: Mortgage rates have slightly decreased from their peak last October, with expectations for further decline throughout the year, albeit with some fluctuations. Rick Sharga of CJ Patrick Company predicts a zigzag pattern in the decline of mortgage rates.
• Impact: A minor reduction in mortgage rates can significantly enhance purchasing power by lowering monthly mortgage payments, making it more feasible for individuals to afford their desired homes.

2. Home Prices

• Market Dynamics: Despite rising home prices nationwide and concerns among some buyers about potential decreases, experts anticipate prices will continue to climb. This expectation is due to persistent high buyer demand coupled with a limited housing supply, factors that are expected to maintain upward pressure on home prices. Selma Hepp of CoreLogic suggests that the demand for homes in early 2024 will strengthen, pushing prices upward and setting new price records over the year.
• Advice: Given the projection of rising home prices, potential buyers are encouraged to enter the market sooner rather than later to avoid higher costs.

3. Availability of Homes

• Recent Changes: The high mortgage rates over the past year deterred many homeowners from selling, preferring to retain their lower rates. However, with mortgage rates now declining, there's a noticeable shift. More homeowners are considering selling, leading to an increase in the inventory of available homes for sale. Mark Fleming of First American believes the easing of the rate lock-in effect, especially if rates drop below six percent, will prompt more homeowners to sell, enhancing the market's dynamism.
• Outlook: This increased willingness to sell is expected to provide potential buyers with more options, making it a favorable time for home purchasing.

Read more in our Spring Guide for Homebuyers....