Top 3 Housing Market Questions Right Now

Are you like a lot of people wondering about the current state of the housing market? With various opinions from friends, news, and social media, it's easy to feel overwhelmed. If you're considering a move, you might find yourself with several unanswered questions. A reliable local real estate agent can be a great resource in these situations. 

Here are the top 3 questions that are on everyone's mind regarding today's housing market, along with some insightful data.

1. What's Happening with Mortgage Rates?

Mortgage rates are higher now compared to the recent past. This change affects how much home buyers can afford, naturally leading to questions about the future of mortgage rates. The truth is, no one can predict the future precisely, but we can make educated guesses based on historical patterns.

Mortgage rates often mirror inflation trends. With inflation rising over the last year, mortgage rates increased too. However, as inflation starts to ease, and with the Federal Reserve pausing their rate hikes, many experts anticipate that mortgage rates might begin to decrease.

We've already seen some signs of slightly lower mortgage rates recently. The situation remains unpredictable, but the general expectation is that 2024 might bring a downward trend. Aziz Sunderji, a strategist at Home Economics, optimistically notes, “Interest rates are likely to be lower in the coming weeks and months.”

2. Where are home prices heading?

Contrary to fears of a dramatic price drop, data indicates that home prices are actually rising in most parts of the country. This trend is expected to continue, albeit at a more moderate pace, which aligns more closely with typical market behavior.
The Home Price Expectation Survey from Pulsenomics, which gathers insights from over 100 economists and market strategists, supports this view. As the accompanying graph shows, there's a strong consensus that home prices will continue to climb in the near future.

3. Is a Recession coming?

Talk of a recession has been rampant in recent years, but there's encouraging news. Regular polls by The Wall Street Journal show that experts are becoming increasingly optimistic about avoiding a recession. While predictions last year leaned towards an imminent recession, current indicators suggest otherwise, as the latest chart illustrates. The nearly even split in expert opinions highlights the uncertainty, but the slight majority believes we've already sidestepped a recession.

The key takeaway? There's less reason to worry and more reason for hope in the housing market. As we approach 2024, it’s a great time to discuss any questions you have about the market. Let's connect and talk about your housing market concerns and opportunities.

Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com

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