Looking At Opinions For 2024

As we approach the end of 2023, it's time to consider what the future holds for the Arizona real estate market. Our approach at Williams Luxury Homes is to EDUCATE, not speculate. Here on our website, we share data, news, thoughts, tips, trends, photos, etc. You get it. Today, we're going over opinions from Realtor.com, Redfin, and Zillow regarding the 2024 market. Enjoy.

Expert Forecasts

We have gathered perspectives from various experts to paint a picture of what to POSSIBLY expect in the coming year. Here's a summary of their forecasts...

• Realtor.com's Perspective:
  • Anticipates a 14% decrease in inventory
  • Mortgage rates hovering around 6.8%
  • Home prices expected to fall by 1.7%
  • Rental rates to drop by 2%
  • Phoenix market: Sales growth at 4.4%, price reduction by 4.3%
  • Improvement in inflation could reduce mortgage rates to 6.5%
• Insights from Redfin:
  • Predicts a slight decrease in home prices, about 1%
  • Rise in new listings
  • Home sales to increase by 5%
  • Mortgage rates to remain steady above 6%
  • A trend towards rental options
• Zillow's Projections:
  • More homeowners will put their houses on the market
  • Stabilization in home buying costs
  • Home values expected to stay stable, with a minor 0.2% decline
  • Rental demand expected to increase, especially in city centers
  • AI to enhance the home searching process

What Can The Real Estate Market Expect In 2024?

Analyzing The Predictions

The forecasts for 2024 suggest several trends shaping the real estate landscape.

• Inventory and Price Trends: A general lean towards a reduced inventory, accompanied by a slight dip in home prices.
• Mortgage Rate Outlook: A general agreement on mortgage rates slightly decreasing but remaining high.
• Rental Market Shifts: An interesting turn towards rentals, affecting rental rates and demand in various ways.

Greater Phoenix Market Focus

Looking at the Greater Phoenix Metro, predictions indicate:

• Sales growth estimated at 4.4%
• Price reduction around -4.3%
• A potential rise in rental demand

Also Read: Analyzing U.S. And Greater Phoenix Housing Market Statistics

Market Potentialities

• Continued Inventory Challenges: The ongoing inventory issues might not see a quick resolution, keeping supply limited.
• Persistent Lock-in Effect: Many homeowners are likely to hold onto their properties due to lower mortgage rates.
• Rental Market Changes: Expect nuanced changes in rental rates and demand, particularly in urban settings.
• Impact of New Constructions: This could play a significant role in both price adjustments and availability.

Even Though Rising, Inventory Has Been Rather Low In 2023

Our Advice For 2024

Since we're out and about daily, we understand the current environment. Here are a few things to keep in mind for the upcoming year.

1. Analyze the market: Review plenty of inventory before deciding on a property to purchase.
2. Trust your agent: Work with an agent you can trust. Why? Right now, some properties are selling much faster than others. Your agent needs to be able to recognize killer opportunities.
3. Explore rate buydowns: Some sellers are offering rate buydowns in the Greater Phoenix area. And this is a good thing, as they're not being offered (as much) in some other markets.
4. Act on well-priced properties: If a home is priced right? Or if the seller is offering solid concessions? Don't fear writing an offer.
5. Recognize market vitality: The local market is not dead. Plenty of properties are selling. Make sure to keep this in mind.

Concluding Remarks

While the above are simply predictions by industry leaders, they serve as a guide for 2024. Will they be right? Who knows. What we DO KNOW is the local market. Whether you are interested in Tempe, Chandler, Scottsdale, Cave Creek, Paradise Valley, or a different part of 'The Valley', we can help. With over 150 years of combined experience, we put our HEARTS into our work. And that is to help our clients. Having said that, if you'd like to have a more in-depth discussion regarding 2024, feel free to reach out. See you next time.