Buying a New Home

The housing market is a complex and ever-changing landscape. What was a good time to buy a home a few years ago may not be a good time to buy today. So, is it a good time to buy a home in 2024?

There are a few factors to consider when answering this question.

First, home prices are still high, and they’re expected to continue to rise in the near future. This means that you’ll need a larger down payment and a higher monthly mortgage payment if you buy a home now.

Second, mortgage rates are high but have plateaued. This means that your monthly mortgage payment will be even higher if you buy a home now. Last summer I asked Adam Hayles, mortgage expert in North Carolina, to weigh in on the impact of interest rates and he said “Currently a 92% probability that the Fed will raise the rates 25 basis points at their July meeting.” He went on to say that September is expected to have another increase as well. “That would put the fed funds rate in the 5.50%-5.75% range and follow the precise expectations of the FOMC dot-plot forecast.” Hayles believes the 2024 will see a cut once rates have peaked at 7.75%. His prediction rang true and interest rates have dropped from their peak earlier this year.

Third, the housing market is still competitive. This means that you’ll need to be prepared to act quickly if you find a home that you like. There are fewer homes being listed on the MLS, then in years past, as sellers currently have no incentive to move having bought when interest rates were lower and feeling content in their rate over home.

So, is it a good time to buy a home in 2024? It depends on your individual circumstances. If you’re in a position to buy a home and you’re willing to make a large down payment and a higher monthly mortgage payment, then now may be a good time to buy. However, if you’re on a tight budget or you’re not sure if you’re ready to buy a home, then you may want to wait until the market cools down.

Here are some additional factors to consider when deciding whether or not to buy a home in 2024:

• Your financial situation: Are you in a stable financial position and can you afford the monthly mortgage payment?
• Your plans for the future: Do you plan to stay in the same area for at least 5 years?
• The housing market: Is the market competitive? Are there homes available that meet your needs?
• Your personal preferences: Do you want to buy a new build or an existing home? Currently new builds are out selling existing homes as builders often run rate locking deals incentivizing the new homeowner.

Ultimately, the decision of whether or not to buy a home in 2024 is a personal one. There is no right or wrong answer. However, by considering the factors above, you can make an informed decision that is right for you.

Here are some additional tips for buying a home in 2024:

• Get pre-approved for a mortgage. This will give you an idea of how much you can afford and make the homebuying process go more smoothly.
• Work with a real estate agent who understands your needs. A good real estate agent will be able to help you find the right home for you and negotiate the best price and terms regarding your needs.
• Don’t be afraid to negotiate. The asking price is just a starting point. Don’t be afraid to negotiate with the seller to get a better price.
• Be prepared to act quickly. The housing market is still competitive, so you’ll need to be prepared to act quickly if you find a home that you like.
• Insurance coverage. Depending on the area, the insurance rate could determine your monthly mortgage premium. If the home is in a higher-wind rated area or being in a flood zone the home could potentially go from dream home to out of budget very quickly. Contacting your insurance agent when buying a home, to determine the new homeowner’s insurance rate, is an important step once you have secured the property.

Buying a home is a big decision, but it can also be a great investment. If you’re ready to take the plunge, I encourage you to do your research and start planning your homebuying journey today.