Welcome to our December 2023 Market Update, where we bring you the latest insights into the ever-evolving real estate landscape. As we approach the year’s end, our mission is to provide you with valuable information to make informed decisions in the dynamic housing market. In this update, we’ll delve into key trends and significant factors influencing the real estate sphere as we bid farewell to 2023.
Home prices on the rise for the next 5 years
Pulsenomics' Home Price Expectation Survey (HPES) is an excellent resource for determining what experts predict for home prices over a five-year period. Over 100 economists, investment strategists, and housing market analysts contributed to the report. And, according to the most recent quarterly release, home prices are expected to rise every year through 2027. While the projected increase in 2024 isn't as large as the one in 2023, keep in mind that home price appreciation is cumulative. In other words, if these experts are correct, your home's value should rise by another 2.17% next year after rising by 3.32% this year.
Buyers receive an early holiday gift as interest rates fall and new listings increase
Prices in four Texas metros–Austin, San Antonio, Houston, and Fort Worth–as well as Portland, OR–are falling from a year ago, and it is predicted that price declines will become more widespread in the coming year. Mortgage rates are continuing to fall, making home ownership more affordable. The median housing payment in the United States was $2,561 in the four weeks ending December 3, down $177 from the record high set in October. This is encouraging inactive homebuyers and sellers to act. Mortgage applications are up 15% from their 28-year low at the beginning of November. New listings are up 7% year on year, the most since August 2021.
The Number of Homeowners Facing Foreclosure Is Falling—but Likely To Rise in 2024
According to a recent report from real estate data firm ATTOM, the number of homeowners who filed for foreclosure fell 7% in November compared to the previous month. However, real estate experts predict that foreclosures will likely increase in 2024. In November, there were still over 3,200 properties in foreclosure, a 5% increase from November 2022. In November, roughly 1 in every 4,347 residential properties had a foreclosure filing.
“As we look ahead to 2024, we anticipate a potential uptick in foreclosure activity as various economic factors evolve and market dynamics shift.”
Sources: Redfin. Keeping Current Matters. Realtor.com
