What will 2024 bring for Northwestern Wisconsin home buyers and sellers? We have some real estate market predictions for you, based on our own experience and insights from economists!
First, let’s take a look at mortgage interest rates. During the final weeks of 2023, mortgage interest rates eased lower, falling below 7% for the first time in months. Now that inflation appears to be cooling off, economists expect the Federal Reserve to gradually reduce borrowing costs throughout 2024.
This is welcome news for Northwestern WI home buyers! But rate reductions will take time to trickle down. The National Association of Realtors© expects 30-year fixed rate mortgages to hover between 6% and 7% for the first half of 2024. Further rate cuts depend on the trajectory of inflation and the overall health of the economy. We also have an election year on hand, which usually means cautious moves by the Fed.
Meanwhile, many homeowners still have mortgages below 5%. The rate reductions expected in 2024 may not be enough to encourage these homeowners to sell and buy a new property, despite record levels of home equity. But those who decide to sell will enjoy very favorable market conditions. Lower rates will increase the number of buyers in the market, who will be competing against each other for available homes. Bidding wars could make a comeback, boosting home seller profits.
In other words, the 2024 real estate market could look a lot like the market we’ve seen for the past several years, involving low home inventory, rising home prices, and more buyers than sellers. Home prices in Northwestern Wisconsin have been rising on a year-over-year basis since 2012, and look likely to continue the trend.
Whether you are buying or selling Northwestern Wisconsin real estate, you’ll get the best advantage by working with local experts! Six Lakes Realty is a locally-owned family business with over 45 years of experience. Contact us today for friendly, hometown service!
Happy Holidays, and all the best to you in the New Year!
Six Lakes Realty
Office: (715) 924-4806