Are home loan values expected to drop in 2024? This is a common concern in the real estate market, which is always evolving. Despite uncertainties for buyers and sellers, with low loan defaults, historically low housing inventory, and the Federal Reserve predicting a slower US economy – resulting in lower mortgage rates and increased buyer interest – all point to a reassuring “No.”
However, a potential shift could occur if we witness a surge in mortgage loan defaults and a significant increase in inventory. Currently, household balance sheets remain robust with the majority of home mortgages under a 4% interest rate. It’s important to note that different price points may not follow the same trends, with higher interest rates impacting larger loans more than smaller ones. The dynamics in the high-end luxury market may differ from those in the first-time home purchase segment.
Attempting to time the market is challenging, underscoring the importance of working with experts. At Bear Flag, we’re here to be your resource for all things residential real estate. Feel free to give us a call and let us guide you in making the best decisions for your current needs. Looking forward to our future discussions.
Talk soon – Martin.