Zillow’s 2024 Housing Market Forecast report
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Slow growth in Median House Prices:
Zillow predicts a smaller annual growth cue for median house prices over the next year. And so I declare, seeing the real estate market high on steroids right now, it looks like it’s about to start a sober lifestyle, clocking an annual home price growth of just under 11%.
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More Homes in the Market:
The market will be trying to fill the void in the hearts of homebuyers thirsting for more options. According to Zillow’s survey, the inventory levels are projected to inch up by 1%. While it’s not significant enough to throw a grand parade, the tighter inventory mirroring a packed Broadway show till now is starting to show some cracks. There’s light at the end of the tunnel for potential buyers!
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Interest Rates May Stabilize:
For those of you who skip a heartbeat at the thought of rising interest rates, there’s a silver lining on the horizon. As Zillow sees it, interest rates will level out, offering a stable plank over the tumultuous sea. So, finally, you can put your heart back in your chest!
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Rent Hike to Continue:
Leasers, don’t celebrate just yet. The grass might not be greener on your side as the report forecasts a steady climb in rents over this period. You better put out an extra piggy bank, because dear renters, saving that extra penny might just come handy.
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Urban Boom:
Zillow predicts an urban renewal with more people moving back into cities. The Great Urban Revival is upon us. So, for those of you having intense ‘Sex and the City’ dreams, your dreams might turn into reality sooner than you think.
The Witty “Hot Take”
While the real estate forecast from Zillow has made some waves, not all the ducks seem to be in a row. It’s like watching a comedy show with a mix of laughs, gasps, and groans. On the one hand, the shrinkage in median home price growth is the punchline all have been waiting for while the projected increase in inventory brings some comic relief.
On the other hand, the predictably stable interest rates stand out like a straight man, letting the funny guys do their thing while just keeping the show together. However, the continuous climb in rents plays the grumpy guy, causing a few frowns in the audience.
The grand finale, though, is the predicted urban boom. If the cities fill up again, it’s going to be like running an encore of an old classic.
So, is this a comedy, drama, or a thriller? Well, as they say in real estate, location, location, location… and in this case, timing, timing, timing!
While Zillow might not have a crystal ball, it sure does have a witty sense of humor, if you can read between the data points. Seriously, who says the real estate industry can’t have a chuckle or two? Happy hunting to all the buyers, sellers, renters, and suburbanites dreaming of their concrete jungle adventure in 2024!
Original article: https://www.inman.com/2023/11/30/zillow-predicts-a-breather-year-for-homebuyers-in-2024/
