The past year has been tough for homebuyers. If you've been searching for a home but put your plans on hold due to market challenges, you're not alone. A Bright MLS study found that many buyers paused their search in late 2023 and early 2024 for reasons such as:

• Not finding anything within their price range

• Unsuccessful offers or difficulty competing

• Not finding the right home

If these reasons resonate with you, here’s some good news: the housing market is transitioning in the second half of 2024. Here are four reasons why now might be the perfect time to restart your home search.

1. Growing Supply of Homes for Sale

One significant change this year is the increase in the supply of homes for sale. According to data from the National Association of Realtors (NAR), inventory has grown throughout 2024.

This increase in supply means you have a better chance of finding a home that fits your needs and preferences. If you previously struggled to find the right home, this is a promising development.

2. More New Home Construction

If existing homes aren't meeting your needs, consider the rise in new home construction. Builders have increased the supply of newly built homes, focusing on smaller, more affordable options to address housing shortages.

Data from the Census and NAR show that one in three homes on the market is newly built. If you haven't considered new homes, you might be overlooking a significant portion of available properties. Many builders are also offering incentives, like buying down mortgage rates, making new homes more accessible.

Talk to your agent about the options available from builders in your area. Their expertise can help you navigate builder reputations, contracts, and more.

3. Reduced Buyer Competition

With mortgage rates around 7%, buyer demand has softened. Combined with increased housing supply, this means less intense bidding wars. Danielle Hale, Chief Economist at Realtor.com, notes that the latter half of 2024 could be less competitive, with inventory reaching five-year highs.

This situation creates an opportunity to find a home with less stress and potentially better pricing.

4. Moderating Home Prices

Home prices are showing signs of moderation, a welcome change after years of rapid appreciation. This moderation results from increased supply and easing demand, leading to more stable price growth.

Forecasts for 2024 suggest home price appreciation will be around 3% to 5%, more in line with historical norms. This means prices are rising at a more manageable pace, reducing the risk of steep price increases.

The Opportunity Ahead

If you’re ready and able to buy, the second half of 2024 might be more favorable for you. While challenges remain, some of the biggest obstacles are easing.

Waiting could mean facing increased competition as more buyers recognize market shifts and mortgage rates potentially decrease. Acting now allows you to take advantage of current market conditions and get ahead of other buyers.

Bottom Line

If you’ve put your dream of homeownership on hold, the second half of 2024 might be your moment to jump back in. Let’s connect to discuss the opportunities available in today’s market.