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Do you want to start or scale your real estate portfolio this year? If so, you are probably asking questions like, “Is it a good time to invest in real estate? Should I wait until mortgage rates change? When is the best time to buy?” These are all great questions, as the real estate cycle and financing opportunities have a big role to play in the return you’ll make on your investment. 

So, this blog will cover a 2024 housing market outlook, including:

  • Mortgage rate predictions for 2024
  • Will the housing market crash in 2024?
  • Will house prices go down?
  • Is it a good time to invest in real estate in 2024?

Check out the brief outlook below, and be sure to register for our next free webinar if you want to dive deeper: The Time is Now: 2024 Q1 Economic Update. Billy Epperhart, WealthBuilders Founder and seasoned investor, will deliver a crystal-clear economic update to help you cut through the noise and position your finances wisely this year. Click here to register. 

housing market outlook

Mortgage Rate Predictions for 2024

Many potential homebuyers are holding off on purchasing their next property because of two little words: interest rates. From a short-term perspective, this makes sense: Mortgage rates reached their two-decade high in 2023, with a high-average of 8.45%. 

However, from a long-term view, rates aren’t that bad. The chart below marks the average 30-year fixed mortgage rates in the United States since 1971. Note that in 1981, the average rate was above 18%! (This was part of President Reagan’s strategy to eliminate hyperinflation, and it worked.)

is it a good time to invest in real estate

Here’s where the 7-8% interest rates gets dicey, though: over the past year, many potential sellers decided not to sell so that they could hold onto their much lower interest rates. This resulted in low supply, so prices remained high despite the higher rates. 

So, will mortgage rates go down, up, or remain the same? The Wall Street Journal surveyed a panel of experts and their consensus was that mortgage rates are expected to decline in 2024. However, it will probably not be by as much as potential homebuyers would like. Most experts predict that we will end the year with average 30-year rates between 6-7%.

Will The Housing Market Crash in 2024?

A housing market crashes whenever there is a housing bubble, and housing bubbles start when prices rise to the point of being overvalued. It can also occur when demand drastically exceeds supply, causing people to offer extreme prices for homes. 

Still, a housing market crash is not likely. Housing bubbles usually pop when interest rates increase significantly, which is not projected to happen. In addition, homeowners are on more secure footing than they were during the 2008 crash.

Will House Prices Go Down?

We predict that housing prices will go down in some places, but definitely not everywhere. There may be a run-of-the-mill cycle correction, but not a crash or dramatic reduction. This largely has to do with the ratio of low supply to eager buyers. Lawrence Yun, Chief Economist for the National Association of Realtors, predicts that home prices will rise around 3 to 4 percent (right around the average appreciation rate of 3-5%). 

He says, “Home price appreciation can only moderate from drastically improved supply. Another 30 percent rise in home construction can easily be absorbed in the marketplace, especially in light of recent weeks’ plunge in mortgage rates.” 

Is it a Good Time to Invest in Real Estate in 2024?

The answer to this question depends on your strategy. At WealthBuilders, we recommend that investors choose properties that can provide them with:

  • 1% of the purchase price in rent each month 
  • At least $300 positive cash-flow each month
  • Check out this podcast for more real estate formulas

Based on the data we covered above, it can be difficult to find properties that meet those guidelines, So, the real question is this: if you are going to acquire a property, how can you put a demand on that property in order to bring in the revenue necessary to make it a viable investment? Can you turn it into a vacation or executive rental? Is there money to be made as a fix and flip? Are there any improvements you can do to increase the value?

At WealthBuilders, we also evaluate this question from a Christian lens. We believe that God will equip you to prosper in any economy, but you need knowledge, understanding, and wisdom in order to make the right financial decisions. That’s where our next webinar comes in–

is it a good time to invest in real estate

This blog just scratched the surface of all we want to tell you about the 2024 Housing Market. If you want to learn more, join us for a free WealthBuilders webinar on February 7th at 10am MT. There will be a live Q&A where you can ask any question, and replays will be sent out to everyone who registers. Click here to register for The Time is Now: 2024 Q1 Economic Update.