What's happening in 2024?

Question

Hi all,

What do the forums think is going to happen to the real estate market in 2024?

The Fed mentioning that they're going to lower interest rates bodes well for affordability and pricing. However, the downside could be a huge swell of buyers coming into the market.

Personally, it would be nice to see more activity in the market. Also, it would be nice to see some more inventory come to market since with interest rates the way they are, it seems that no one is willing to sell their house and enter the buyer pool.

Would love to hear your thoughts/forecasts!

Are prices going up again?

Is buyer competition going to skyrocket due to pent up demand?

Are you going to be buying more deals?

Carlos Ptriawan · Answer

this is the first time in history the Fed is losing money , they had to layoff people and if they are bank, the Fed is already filing bankruptcy.

having said that, the fed created condition that they want everyone to go bankrupt by their own decision loland that's a fact given reality today, so not a forecasting lol

Taylor L. · Answer

As a proud Lord of the Rings nerd, please allow me to borrow a quote from Galadriel: "I do not foretell, for all foretelling is now vain."

The truth is, nobody really knows what'll happen with rates. If rates do fall, that can be reasonably expected to stimulate housing demand to some extent. However, that depends on other factors that could precipitate a drop in rates.

For example, banks currently have significant unrealized bond losses on their books. Those bond losses combined with banking runs already caused two record setting bank failures. If the Fed cuts rates due to a banking crisis, it would be reasonable to expect the real estate market to remain as it is, rather than to be stimulated.

@Chris Seveney had a great post on this topic recently.