{"id":10198,"date":"2023-12-10T03:51:20","date_gmt":"2023-12-10T03:51:20","guid":{"rendered":"https:\/\/imsfund.com\/?p=10198"},"modified":"2023-12-10T03:51:20","modified_gmt":"2023-12-10T03:51:20","slug":"more-homes-more-buyers-but-prices-could-drop","status":"publish","type":"post","link":"https:\/\/imsfund.com\/index.php\/2023\/12\/10\/more-homes-more-buyers-but-prices-could-drop\/","title":{"rendered":"More Homes, More Buyers, But Prices Could Drop?"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n<button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n<svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">In this article<\/p>\n<p><\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">Zillow just released its outlook for 2024, and a lot of investors will want to pay attention to what it says. From\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-mortgage\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">mortgage<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0rates and prices to top markets and\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/how-to-flip-houses\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">home flipping<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0activity, the report offers predictions for all of it.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Here are the main points you\u2019ll want to take away.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">More Housing Supply Will Be Unlocked<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to Zillow\u2019s economists, as well as<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/federal-reserve-to-lower-rates-six-times-says-ing-economics\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">\u00a0general expectations surrounding the Federal Reserve\u2019s moves next year<\/span><\/a><span data-preserver-spaces=\"true\">, interest rates, including those on mortgages, are going to stay high for some time.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The Mortgage Bankers Association\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.mba.org\/docs\/default-source\/research-and-forecasts\/forecasts\/2023\/mortgage-finance-forecast-nov-2023.pdf?sfvrsn=acef26ff_1\" target=\"_blank\" rel=\"nofollow noopener\"><span data-preserver-spaces=\"true\">forecasts 30-year loan rates<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0to remain above 6% for the entire year, while Fannie Mae doesn\u2019t expect them to drop below 7%.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Because of this extended timeline, Zillow projects that previously gun-shy homeowners will soon come to accept those higher rates and start listing their homes.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cWith mortgage rates rising over the past two years, homeowners have been reluctant to sell, opting instead to hold onto the ultra-low interest rate on their current mortgage,\u201d the report reads. \u201cMore of these homeowners will end their holdout for lower rates and go ahead with those moves.\u201d<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Home Price Growth Will Slow<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">With more supply will come slower price growth. As the report puts it, \u201cMore homes on the market\u2014even the gradual increase Zillow economists expect\u2014would be good news for homebuyers, spreading demand and easing upward pressure on prices.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In total, the company only projects prices to remain steady, only falling about 0.2%. But when combined with a slight decrease in rates, it could mean an\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/afford-invest-real-estate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">affordability<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0boost for many looking to buy a home.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cTaken together, the cost of buying a home looks to be on track to level off next year, with the possibility of costs falling if mortgage rates do,\u201d the report explains.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Urban Locations Will Grow in Popularity<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Downtown areas and urban markets suffered during the pandemic, but it seems interest in the areas is picking back up\u2014which is good news for rental property owners in these areas.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to Zillow\u2019s Observed Rent Index, the gap between urban and suburban rents is narrowing, and in 33 major metro areas, suburban rent growth is actually outpacing those in urban areas. That said, New York City is one area where urban interest is growing, and \u201cZillow foresees more markets following suit, with rental demand surging near downtown centers,\u201d the report says.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">An important thing to note is that many urban areas have experienced what Zillow calls a \u201c<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/finding-multifamily-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">multifamily<\/span><\/a><span data-preserver-spaces=\"true\">\u00a0construction boom\u201d this year, which could pose a challenge for buy-and-hold investors in these areas.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cA huge number of new homes have hit the market,\u201d Zillow says. \u201cMore options for renters looking for a new place means landlords who are trying to attract tenants have more reason to compete with each other on price. That\u2019s a key reason more rental listings are offering\u00a0<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/landlords-are-offering-more-concessions-as-the-rental-market-softens\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">concessions<\/span><\/a><span data-preserver-spaces=\"true\">.\u201d<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Landlords may also want to invest more into making their properties attractive to stand out from the pack.<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">AI Will Make Real Estate Easier<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Advancements in artificial intelligence will make buying, selling, and shopping for properties easier next year, according to Zillow. The company predicts a slew of new AI-powered tools will hit the market in 2024\u2014ones that improve listing descriptions, create 3D content, and offer other benefits that might be useful to agents, buyers, and sellers.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Home shoppers can also expect \u201cgenerative-AI-powered experiences\u201d that help them gather valuable insights on properties and guide them throughout the mortgage process.\u00a0<\/span><\/p>\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Investors Will Have Some Competition<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">While Zillow does project more for-sale housing to hit the market in 2024, it won\u2019t be enough to fully sate demand. This will push traditional homebuyers away from more move-in ready properties and into flipper territory, toward \u201chomes that need a little work,\u201d the company predicts.\u00a0<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">\u201cFaced with limited choices, buyers will be willing to overlook small flaws, such as an outdated bathroom or kitchen,\u201d the report reads.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For investors, this means more competition on these properties and, potentially, higher costs. As Zillow puts it, \u201cThese homes won\u2019t come cheap.\u201d<\/span><\/p>\n<div id=\"visibility-group-block_64dd56548a48e\" class=\"visibility-group  hidden\">\n<div id=\"hero-block_62df1a82bfc88\" class=\"first:mt-0 hero-block py-4    has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n<div class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 w-full \">\n<main class=\"py-4\"><\/p>\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Funding<\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Quickly find and compare investor-friendly lenders who specialize in your unique investing strategy. It\u2019s fast, free, and easier than ever!<\/p>\n<p><\/main>\n<\/div>\n<div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n<img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  shadow-xl rounded-md hidden lg:block\" src=\"https:\/\/bpimg.biggerpockets.com\/https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Lender-Match.png\" alt=\"find a lender with lender match\" title=\"Zillow's 2024 Prediction: More Homes, More Buyers, But Prices Could Drop? 2\"\/>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"wp-block-group is-layout-constrained wp-block-group-is-layout-constrained\">\n<div class=\"wp-block-group__inner-container\">\n<div class=\"wp-block-group__inner-container\">\n<div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n<div class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n<div class=\"relative z-30 w-full \">\n<main class=\"py-4\"><\/p>\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n<p><\/main>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p class=\"italic\"><b>Note By BiggerPockets:<\/b> These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.<\/p>\n<\/div>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.biggerpockets.com\/blog\/zillow-2024-housing-outlook-predicts-more-inventory-and-lower-prices\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In this article Zillow just released its outlook for 2024, and a lot of investors will want to pay attention to what it says. From\u00a0mortgage\u00a0rates and prices to top markets and\u00a0home flipping\u00a0activity, the report offers predictions for all of it. Here are the main points you\u2019ll want to take away. More Housing Supply Will Be [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":10199,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"fifu_image_url":"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/12\/for-sale-sign-1024x517.jpg","fifu_image_alt":"","footnotes":""},"categories":[9],"tags":[],"class_list":["post-10198","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10198","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/comments?post=10198"}],"version-history":[{"count":1,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10198\/revisions"}],"predecessor-version":[{"id":10200,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/posts\/10198\/revisions\/10200"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media\/10199"}],"wp:attachment":[{"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/media?parent=10198"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/categories?post=10198"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/imsfund.com\/index.php\/wp-json\/wp\/v2\/tags?post=10198"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}