Yet, even as sales stalled amid elevated mortgage rates and home prices, one silver lining emerged—more resale inventory entered the market, which has begun to put some downward pressure on the pace of home price growth.

Other good news for home shoppers is the decline in the median price for a new home—now below the median resale home price—even as builders continue offering incentives to lure buyers.

Nonetheless, experts say the housing market will only see renewed momentum once mortgage rates drop enough to ease buyer affordability obstacles and incentivize homeowners locked in at low rates to move.

Housing Market Forecast for 2024

Experts insist the housing market will improve despite high mortgage rates, out-of-reach home prices and sluggish sales transactions amid dampening demand.

Unfortunately, hopeful buyers continue to see a delay in this yearned-for transformation, thanks to several ongoing headwinds. One is inflation taking its sweet time cooling off, further delaying the Federal Reserve from cutting the federal funds rate.

Mortgage rates indirectly track this benchmark interest rate banks use as a guide for overnight lending. Consequently, with the federal funds rate at its highest level in over two decades, mortgage rates—and borrowers—are feeling the added impact on their ability to afford a home.

Meanwhile, U.S. home prices remain unaffected by persistently high mortgage rates, posting an annual 6.3% gain in April, according to the latest S&P CoreLogic Case-Shiller Home Price Index. Even as this annual gain marked a slowdown from the 6.5% gain in March, the index still broke the previous month’s record high.

Many experts expect a Fed rate cut will help stimulate the housing market, but it remains unclear when—and if—even a single cut will occur in 2024.

Will the Housing Market Finally Recover in 2024?

For a housing recovery to occur, several conditions must unfold.

“For the best possible outcome, we’d first need to see inventories of homes for sale turn considerably higher,” says Keith Gumbinger, vice president at online mortgage company HSH.com. “This additional inventory, in turn, would ease the upward pressure on home prices, leveling them off or perhaps helping them to settle back somewhat from peak or near-peak levels.”

Of course, mortgage rates would need to cool off, which seems promising given the recent declines. The average 30-year fixed mortgage rate remained consistent in July, coming in at 6.78% for the week ending July 25, a minor increase from 6.77% the previous week.

However, when mortgage rates finally go on the descent, Gumbinger says don’t hope they cool too quickly. Rapidly falling rates could create a surge of demand that wipes away any inventory gains, causing home prices to rebound.

“Better that rate reductions happen at a metered pace, incrementally improving buyer opportunities over a stretch of time, rather than all at once,” Gumbinger says.

He adds that mortgage rates returning to a more “normal” upper 4% to lower 5% range would also help the housing market, over time, return to 2014-2019 levels. Yet, Gumbinger predicts it could be a while before we return to those rates.

NAR To Implement Settlement Agreement Changes in August

Following years of litigation, the NAR has agreed to pay $418 million to settle a series of high-profile antitrust lawsuits filed in 2019 on behalf of home sellers. The settlement received preliminary court approval in April. A judge is expected to grant final approval in November. Meanwhile, NAR announced that the new required practices will go into effect on August 17.

The required new rules prohibit broker compensation offers on multiple listing services (MLS), the private databases that allow local real estate brokers to publish and share information about residential property listings.

Moreover, sellers will no longer be responsible for paying buyer broker commissions—upending an accepted practice that has been in place for years—and real estate agents participating in the MLS must establish written representation agreements with buyers.

If you sold a home in the past ten years, you may be eligible for a small piece of this settlement pie. Visit realestatecommissionlitigation.com for more information about filing a claim.

Housing Inventory Forecast: When Will There Be Sufficient Supply To Reduce Prices?

Despite more resale homes entering the market, the inventory shortage remains severe and likely will for some time, thanks to multiple headwinds.

For one, many homeowners remain “locked in” at ultra-low mortgage rates, unwilling to exchange for a higher rate in a high-priced housing market. Consequently, demand continues to outpace housing supply—and likely will for a while.

“I don’t expect to see a meaningful increase in the supply of existing homes for sale until mortgage rates are back down in the low 5% range, so probably not in 2024,” says Rick Sharga, founder and CEO of CJ Patrick Company, a market intelligence and business advisory firm.

New home construction has provided some relief, but not enough to fill the inventory gap meaningfully.

The U.S. remains 4.5 million homes short, up from 4.3 million a year ago, according to Zillow analysis.

Entry-level home supply is particularly dire, contributing to an ongoing cycle of propped-up demand and inflated prices.

Here’s what the latest home values look like around the country.

Home Builder Sentiment Dips

Builder sentiment continues to wilt with the summer heat.

High mortgage rates and sticky inflation are largely to blame for the dampened outlook for new construction, with builder confidence sliding from 45 to 43 in May, according to the most recent National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is the second consecutive month of downward movement and negative sentiment.

A reading of 50 or above means more builders see good conditions ahead for new construction.

Meanwhile, the construction of new homes, which had been on a tear, helping to fill the hole left by scant resale inventory, has slowed.

Permits for new single-family homes fell to their lowest seasonally adjusted annual rate since June 2023 amid builder blahs, dipping 2.9% month-over-month in May, according to the latest data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD). Housing starts were down 5.2%, and completions slid 8.5% from April.

However, there’s a silver lining for hopeful buyers—25% of builders slashed prices in May to boost sales, and more were open to offering incentives.

Residential Real Estate Stats: Existing, New and Pending Home Sales

Current and anticipated home sales transactions fizzled across the board in May thanks to scorching-high mortgage rates. Here’s what the latest home sales data has to say.

Existing-Home Sales

Existing-home sales dipped 0.7% in May, according to the latest report from NAR, marking the third straight month of declines as ascending mortgage rates and home prices deterred potential buyers. In May 2023, home buyers could get a mortgage rate well over half a percent lower at a time when homes were also more affordable.

Sales also fell 2.8% compared to May last year.

Experts believe home sales activity will perk up once inflation eases and the Fed finally starts to cut interest rates. Nonetheless, many prospective buyers—particularly first-time and lower-income home shoppers—will likely be left out in the cold, with the median price for an existing home in May soaring 5.8% from a year ago to a new record high of $419,300.

“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” said Lawrence Yun, chief economist at NAR, in the report. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020.”

One upside to fewer sales is that resale inventory has been loosening since December. The latest NAR data shows inventory growing 6.7% month-over-month, logging 1.28 million unsold homes at the end of March. Still, only 3.7 months of inventory remain at the current monthly sales pace. Most experts consider a balanced market between four and six months.

New Home Sales

Meanwhile, new homes are also not invulnerable to high mortgage rates despite their shiny appeal.

Amid mortgage rates hovering close to or above 7%, May sales of newly constructed single-family houses plunged 11.7% 4.7% compared to April and 16.5% from a year ago, according to the latest U.S. Census Bureau and HUD data.

The good news for prospective buyers is that the slow pace of new home sales puts new home inventory at a level not seen since early 2008, according to Lisa Sturtevant, chief economist at Bright MLS.

“Buyers that remain in the market are starting to have more leverage, and sellers of existing homes are increasingly offering concessions, including help with closing costs and money toward repairs,” said Sturtevant.

Moreover, those shopping for new construction will be happy to hear that the median price for a new home in May fell $500 to $417,400—nearly two thousand dollars below the median existing-home price.

The post Housing Market Predictions For 2024: When Will Home Prices Be Affordable Again? appeared first on Amora Escapes.

It’s a property with a view spanning over 10,000 square feet in Alameda, less than a mile from the beach and just steps away from Rittler Park and South Shore Center.

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A Greenwich, Connecticut, estate—the last of a swath of hundreds of acres once owned by the Rockefeller family—has hit the market for $8.995 million.

The property combines two parcels for a total of 4.24 acres, including a five-bedroom Colonial-style home, according to the listing with BK Bates of Houlihan Lawrence, who brought the home to the market for the first time at the end of October.

“After being passed down for generations, the prewar estate is the last of the Rockefeller family land [in Greenwich] to hit the market,” she said in an email. “Situated on two parcels on a very prestigious street within walking distance to town, this gorgeous, private property is a very rare opportunity for a buyer.”

Around the turn of the 20th century, the Rockefellers owned about 500 acres in Greenwich. The family sold about 80 acres of the land to billionaire Len Blavatnik for $32 million last year, listing a roughly 54-acre parcel—the last large portion of the estate—for $21.5 million, in November 2022, The Wall Street Journal reported at the time. Greenwich Academy, a private school for girls, purchased that acreage for $18.35 million in August.

Ann Rockefeller Elliman, the daughter of Avery and Anna Rockefeller and the great-grandniece of industrialist John D. Rockefeller, most recently owned the estate, according to records with PropertyShark. She was married to Edward Scales Elliman, the son of Douglas Elliman, founder of the real estate company of the same name. Ann Rockefeller Elliman died in June at age 96. Representatives of her estate declined to comment.

The main house dates to 1949 and was renovated in 2022, according to the listing. It has a traditional floor plan, featuring a large living room with oversized windows, hardwood floors and a corner fireplace, listing photos show. There’s a formal dining room connected to the living area, and a separate kitchen with a family room and a breakfast nook on the other side. The ground floor also boasts a wood-clad library.

There are five bedroom suites on the upper level, although one—adjacent to the main bedroom—is currently used as an office, according to the floor plan. Combined, the suite includes two bathrooms and two walk-in closets.

Outside, there’s an expansive lawn, mature trees and a pool, surrounded by stone walls.

Source : MansionGlobal

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Cook County property tax bills will hit the mail Nov. 1 and are due Dec. 1, just in time for the holidays. The median residential bill went up 7.2% to $4,958.

But the highest increases were in the north and northwest suburbs, where property tax bills increased by 15.7%, the largest increase by percentage in 30 years. In Hanover Park, the median residential property tax bill went up by 19%. In North Lake, a western Chicago suburb, the median residential bill increased by 27%.

Tax bills went up for 81% of property owners countywide, 17% saw their bill drop and 2% saw the same amount on their bill.

One of the reasons for the increase was a state law allowing taxing bodies such as local governments to “recapture” dollars refunded to property owners in appeals. The tax burden shifted to residential property owners after commercial properties, hit by large reassessments in 2019, had their property values cut by nearly 20% during the appeals process.

In total, Cook County property taxes rose by more than $909 million from 16.7 billion to $17.6 billion.

Homeowners represent nearly $600 million of the increase and commercial property owners owe more than $300 million more in property taxes. Of the 940 taxing units in Cook County, 72% raised taxes.

Property owners who want to see their bill before it arrives in the mail or pay it can see it online at cookcountytreasurer.com.

Source : IllinoisPolicy

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So decide, do you have a growing family or work from home? Space is probably going to be a bigger factor so you might want to widen your search area — there are some super quality areas that you might not know about.

If you’re commuting every day, then location might be more important, but it might be worth thinking beyond the Tube. The Overground and Elizabeth line have made a lot of areas much easier to reach than previously.

Be clear on your non-negotiables.

2. Do your research. If you’re looking for a two-bedroom flat you should view at least 10 properties.

Our advisers see well over 250 properties a year. The more research you do, the better placed you are to negotiate.

3. Don’t register with only one agent. Every London area will have five to 10 main agents. Talk to all of them.

An agent might not have what you are looking for today, but they might get one on their books next week.

Do your research and don’t just register with one estate agent / Matt Writtle

4. You can afford to be fussy. There will be more supply coming on to the market in the next couple of years as more and more people come off low fixed-rate mortgages.

Assuming interest rates settle around the four per cent mark, that could prompt a number of strategic sales.

5. Don’t disregard a property just because it’s been on the portals for a while. Sometimes there’s nothing intrinsically wrong with them, they might just have been overpriced or launched at the wrong time.

More often than not, you might be able to negotiate more heavily on the price — but get the inside track on why they are selling.

6. Be proactive. If you have narrowed your search down to a couple of streets or a very tight area, put a letter through the door, or even knock on the door. That’s something that we do as professionals — it can very often yield a result.

7. Be sure to check out the wider area. Too many people fixate on the property itself and forget to check the local amenities and transport options. We will test-run a client’s commute, or do a trial school run.

8. Make an offer. There is no fixed percentage that is acceptable for this but the point to remember is that a property is only worth what someone is prepared to pay for it.

Quality properties also tend to be unrealistically priced: it always takes a while for sellers to come to terms with a lower price. But we are about 12 months into a more bearish market, so it’s unlikely to surprise or offend if you want to negotiate.

The trick is to almost ignore the guide price and focus on whether or not the vendor is serious about selling. If in doubt, ask a buying agent for advice.

9. Look for properties you can improve in some way. Even with labour and materials costs higher than previously, you should be able to get a really good deal on a fixer-upper.

Even if you are not keen on building/DIY projects, they might only impinge on your life for a few months out of maybe a decade of living somewhere.

Most properties can be improved and the money you invest now will give you a good return in the medium to long term.

10. The garden question. If youfind somewhere with outside space, this will benefit you not only while you are living there but also when you come to sell.

A flat without outside space in more leafy or residential areas may feel like good value but it could be less liquid in future, although if it is close to a park or river walk this might help.

That said, there is a big difference between buyers’ expectations in Mayfair or Soho and Chiswick. You will pay a premium for a rare garden in central London but there will always be buyers with different priorities and budgets — and don’t pay more for a garden you won’t appreciate.

11. View more than once. Experience the inside and outside of a property at different times of the day and week — during rush hour, school time and weekends. See if there are noises from the Tube, trains or buses.

Take a friend or relative who isn’t going to be living there for a second opinion or, even better, employ a professional adviser. I recommend that a client see a property at least twice.

Source : EveningStandard

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A Beverly Hills, California, home where Greta Garbo once hung her hat hit the market Friday for $10 million—a $2 million price cut.

The six-bedroom, six-bathroom house was first listed last summer for $12 million with a different brokerage. It was removed from the market in November, and relisted with Markus Canter, Luxury Properties director at Berkshire Hathaway HomeServices. The Swedish-born film star lived there in the 1930s, he said.

Located in the coveted Crest Streets, the property has been reimagined and expanded by the interior designer Nicole Sassaman. She purchased the estate in 2003 for $1.4 million, according to records with PropertyShark, and began a renovation that was one of her biggest projects to date, according to her website.

“She truly created things out of thin air, adding a second story and creating a pool and yard in the previously unused space,” the site said. “The space was built out to have the sophistication and fun of a hillside estate with the balance of a comfortable and smart family home.

The views overlooking the Los Angeles skyline and ocean beyond are “simply a cherry on top,” the site said. Sassaman did not immediately return a request for comment.

Warm woods, stonework and walls of windows are hallmarks of the design, which has an open layout, according to the listing. There’s a kitchen with custom cabinetry and an adjacent dining area.

Outside is an “oasis,” the listing noted, with a pool and spa with panoramic views, several spots for lounging and dining and mature plantings.

“The property embodies the essence of glamor, historic allure and the coveted California luxury lifestyle,” Canter said.

Source : MansionGlobal

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NORTH TEXAS (CBSNewsTexas.com) – We’ve talked a lot about property taxes this year. As you likely know, there is now a plan to get relief for Texas homeowners.

We’ve covered the details of the $18 billion package. But it’s a complicated topic, and there have been so many changes. Some of our viewers still had questions.

Jack Fink answers three of those questions below.

What prevents school districts and municipalities from increasing the tax rate to cover the shortfall from the increased exemptions?

– Rich from Fairview

Homeowners have a variety of protections. Back in 2019, the state legislature passed a law preventing municipalities from raising property tax levies on existing properties by more than 3.5% without holding an election.

School districts can’t increase property tax levies on existing properties by more than 2.5% without going to the voters first.

In addition, this year the legislature passed a law that will cap property appraisal increases on non-homestead properties, including commercial properties, to 20%. This is a pilot program for three years. Right now there is no limit on property appraisal increases.

Where do renters stand? Will we be getting our tax rebate?

– Gabrielle

Renters will not be receiving any property tax rebates. Some Democratic state lawmakers proposed a rebate from the state, but that was not part of the deal worked out between Republicans in the House and Senate.

Some lawmakers said they believe renters could save money if landlords passed along some of the savings in property taxes they receive. Speaker Dade Phelan told CBS News Texas that if property taxes are lower, developers may build more apartment complexes, increasing competition, and perhaps lowering rent.

But other lawmakers say there is no proof of this and point out that the state could not require it.

How will tax relief work for people over 65 whose taxes have been frozen for over 10 years? During this time, our property valuation has more than doubled. Will there actually be a tax reduction for us?

– Charles

Homeowners over 65 will benefit in a couple of ways.

First, the state legislature approved a law this year that will increase the homestead exemption. Voters will have to approve this in November because it will require a change to the Texas Constitution. This will lower property tax bills even though school property taxes have been frozen for homeowners over 65, and even with some municipalities already providing their own exemptions on their property taxes.

The second way seniors will get a tax break is through a law passed in 2021. It reduces school maintenance and operations property tax rates by replacing them with taxpayer dollars collected by the state.

How much could you save?

CBS News Texas has created a tool that calculates the estimated difference between what you paid on school property taxes in 2022, and what you would have paid if the approved tax relief package had been approved and in place. Just enter your property value and select the school district you pay taxes to below.

It’s important to note, this is a calculation that only takes into account the homestead exemption and school tax compression. You may apply for other exemptions.

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