As a real estate professional, you’re no stranger to the ebbs and flows of the real estate industry. While the market trends from 2023 led with words such as cooling, dropping, skyrocketing, and slowing down, Weichert is looking toward the real estate trends and predictions of 2024 with optimism and strength.
While we can do our best to predict the real estate trends, no one has a crystal ball. No one can predict with complete accuracy. But we can look at current market conditions to make an educated guess as to what things might be like for the real estate industry in 2024. Weichert has over 50 years of experience in real estate, so we know a thing or two about how to ride the market shifts, but also how to keep a tight grip on the reins. This way we control what we can—the dialogue with our customers, our strategic pivots, and our leadership focus.
Here’s what Weichert sees as the top three trends for 2024:
- Tight supply, high demand, high-cost hurdleMortgage rates and the affordability factorFewer agents to combat a tough market
Tight supply, high demand, high-cost dilemma
Homeowners are reluctant to list, which is at the heart of low inventory. In mid-year 2023, the National Association of REALTORS® (NAR) made their predictions for the remainder of the year along with what could be coming in 2024. NAR’s chief economist, Lawrence Yun, said, “The recovery has not taken place, but the housing recession is over. The presence of multiple offers implies that housing demand is not being satisfied due to a lack of supply.”
Yun also went on to say, “There are simply not enough homes for sale … because homes aren’t being built fast enough to keep up with demand, which puts upward pressure on prices.” NAR expects home prices to rebound by 2.6% in 2024. They also predicted the national median new-home price would fall by 1.9% in the second half of 2023, to $449,100, before jumping by 4.2% [in 2024] to $468,000.
What’s in your control:
- Your attitude. Stay positive. It’s contagious. If you’re negative, those around you will be, too.Your effort. Be proactive. Don’t wait for business. Go upstream and get it. You control the effort you put into everything, especially prospecting.
Mortgage rates and the affordability hurdle
The higher mortgage rates will continue to be a core challenge for today’s sellers-buyers. According to a 2023 survey by Realtor.com, 82% of those looking to buy and sell a home feel “locked in” by their current low mortgage rate. As a result, at the time of the survey, more than half of sellers-buyers (56%) who were planning to sell in the next 12 months said they were waiting for rates to come down, while 25% needed to sell sooner for personal reasons.
What’s in your control:
- Your preparedness. Understand the market, educate yourself, and be ready for anything.Your passion. It will help you become the subject matter expert, increasing your credibility and energizing those around you.
Fewer agents to combat a tough market
Tens of thousands of real estate agents have exited the industry. In fact, more than 60,000 professionals left in the first six months of 2023, according to data from NAR. The flurry of agents that rushed in during the pandemic real estate peak years has leveled back off. This poses opportunities and challenges for 2024.
On the plus side, it levels off the competition. Too many agents all trying to sell the same too few homes is not the ideal scenario. However, fewer agents, and many of them still refining their real estate chops, means fewer leaders to step up. Tough markets tend to weed out those professionals who are not in it for the long haul. Those who were looking for fast, easy earnings are rethinking their career choices. All the more reason to make 2024 the year to place yourself in a leadership position. Talk with us about how this might be the ideal time to consider a franchise opportunity.
What’s in your control:
- Your self-advocacy. How you promote yourself can send a strong message. Be your biggest advocate.Your confidence. Believe in yourself and your team. You can retain and attract the right agents when you showcase strength and certainty.
Now, knowing that these 2024 real estate trends and predictions might and most likely will shift, Weichert encourages you to stay vigilant with information. To stay abreast of what’s going on in the industry throughout the entire year, you need to completely immerse yourself in it. Here are four ways we recommend:
- Follow industry news. Sign up for news sources and emails, read industry blogs from real estate leaders like Weichert, subscribe to trade publications, and visit news websites. Make it a habit to stay connected to some form of media each and every day.Attend industry events. To stay-up to date on real estate market trends, place yourself where the thought leaders are. Seminars and conferences are a great way to hear about the latest trends from experts in our field.Join industry organizations. Check for groups in your area. They may provide access to all kinds of information about market trends. See if they have accountability groups you can join. You can also tap into networking events and educational functions as a way to meet other like-minded connections.Monitor your local market conditions. Stay trend-savvy by keeping up with national news, but don’t forget to keep your finger on the pulse of what’s happening in your own backyard. You already have an insider’s view on things like local elections or key influencers, such as a new business, in town. Leverage this knowledge to your advantage.
Get up, suit up, get started—it’s in your control
“It’s imperative that you focus on building momentum going into 2024. But momentum doesn’t just happen to you,” says Bill Scavone, President, Weichert, Realtors®, Weichert Real Estate Affiliates, Inc. “If you want it, you must create it—right now—by getting up, suiting up, and getting started. You need to show up daily, making a difference in everyone’s life, always improving, uplifting others, and receiving recognition for what you have contributed to your community.”
Take a nod from our leader, Bill. It’s time to get up, suit up, and get started for a successful 2024. Reach out to us for the support your brokerage needs to make it happen!