2023 Real Estate Year in Review
The number of transactions saw a decrease. ⤵️ The national housing market experienced a notable decline following a previous surge in past years. Home sales cooled from 6.12 million and are expected to land around the 4.1 million mark in 2023.
Key Highlights
NAR predicts* 4.71 million existing-home sales in 2024, up 13.5% from 4.1 million anticipated in 2023.
Here are the top 3 takeaways of 2023’s housing market
01. Inventory Challenges
Tight inventory persisted as a dominant factor, giving sellers the upper hand. The imbalance between buyer demand and available homes remained, making each listed property a coveted commodity.
02. Potential Market Shift
Despite the current seller’s market, there’s a potential for change in 2024, especially if mortgage rates continue to decline. The dynamics could shift, affecting the balance between buyers and sellers in the coming year although no guarantees.
03. Confidents in Agents is Strong
Even with dramatic technological advances and the use of AI, in 2023, 89% of homebuyers and sellers used a real estate agent or broker to sell their home.
❓ THE BIG QUESTION ❓
Will 2024 favor buyers or sellers?
The Bottom Line
Real estate is still the best long-term investment.
Two in three Americans live in an owner-occupied home.
First-time buyers were responsible for approximately a 1/3 of the sales last year.
If you can buy, do so.
If you can sell, do so.
If you can invest, do so.
That’s the message.
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*NAR’s Existing-Home Sales for December 2023 will be released on Friday, January 19, 2024, at 10:00 a.m. Eastern.