So, transparent email here. 2024 has been a very, very challenging year. It is the worst year I’ve had in real estate since my first year 15 years ago as far as transaction count goes. To say that the market has cooled, well, that is an understatement. I’m not complaining, I’m not poor or destitute or anything. It is just a fact. I spent the year scratching my head, wondering, theorizing, plotting, executing and being disappointed. The fact is, if you are sitting in a house that you bought 3+ years ago, chances are, it would have to be a pretty good reason for you to move. Rates have tripled, prices have gone up 50-100% depending on specific circumstance and there is just no reason to get super excited about making a move. There is NO sense of urgency unless it is very situationally specific.
Compound this issue with the fact that there are still people getting into the business and folks are not exiting as some predicted. Agent count is staying pretty steady. This impacts a longer term agent as the new folks erode long term prospects and repeat clients. People feel obligated to use their newly licensed nephew rather than the agent they’ve trusted with the last 3 transactions.
Throw in the litigation from this year and an election cycle and it has been tough. So what does the outlook show for next year. Rates will likely slide down slowly. Demand will increase slowly. Overall, I don’t think the economy will boom. We will probably just bounce around at the same levels.
What about RIGHT now. This is the best buyer’s market we’ve had for years. We can negotiate on price. We can negotiate on closing costs, rate buydowns, etc. We can also get home sale contingencies accepted and basically any form of legitimate financing. Lenders are offering some incentives. It is actually really good for buyers right now IF you can pay the payment at the current rates.
Should I wait to buy? If you can afford the payments NOW and you have some cash and you are renting, this is a GREAT time to buy. Better than we have had in a long time. If you are extremely payment sensitive and your rent is doable, this may not be the best time to buy. You may want to wait for rates to drop. The gamble is that if you wait for rates to drop, you are in a big camp and will have significantly more competition when they drop. More competition means higher prices. Higher prices means that gain you get from rates dropping, goes away.
Should I wait to sell? This is completely situational. Why do you want to sell? If you have outgrown your home or you need to reduce costs, then no. Just know that you might not get what you think. Prices are overall increasing right now but may situationally drop some. If you bought 2 years ago, it is actually possible you could break even or possibly even be a little upside down. All that said, if you are facing a situation with the bank, do not hesitate to sell. I have actually seen just a few more bank owned properties lately. There is basically no reason to do this.
Overall, I would say live your life right now. There is no big move to make at this time. The sky is not falling, neither are prices. If you have a great rate and reasonably comfortable, stay put. You will have opportunities in the next few years. If you are uncomfortable, make the move. You will see appreciation over the next 5 years. If you need to make a quick buck in the next 2 years, proceed with utmost caution. Honestly, look for a situation where someone just needs out.
