Last Updated on January 3, 2024
Allen Tate Companies Chairman Pat Riley addresses market changes
Even small changes can have a big impact, which is important to keep in mind as the residential real estate market ebbs and flows.
Home appreciation, interest rates, inventory and movement by both buyers and sellers will all impact real estate in 2024.
“We’re going to see some positive changes and some ongoing challenges in the market as we move through this year,” said Allen Tate Companies Chairman Pat Riley in the January edition of Carolinas Market Update.
Home price appreciation will continue to be higher in the Carolinas because of in-migration, leading the rest of the country, Riley said. He expects appreciation to land around 5 to 7 percent – great news if you already own a home but a hurdle if you are just entering the market.
That said, first-time buyers returned to the market in 2023, making up 32 percent of all buyers. A median income increase of $25,000, coupled with less competition and fewer multi-offer scenarios, have nudged first-timers. Down payments for first-time buyers averaged 8 percent last year, the highest since 1997, with many turning to family members or investments for assistance.
Interest rates have seen a recent drop and Riley expects that they will continue to fall slightly in 2024. Consumers are becoming more comfortable with rates in the 7 percent range, Riley said.
“Both buyers and sellers are remaining on the fence,” Riley said. “In 2020 and 2021, we saw a lot of energy and movement in the market, with consumers purchasing larger homes, moving to right-sized spaces, buying second homes, or doing renovation work. In 2023, buyers were stuck, thanks to low inventory and the sticker shock of smaller, higher demand homes.”
Buyers looking to purchase in 2024 must be ready to act quickly and offer a larger down payment. Last year, sellers typically sold their homes at asking price, in about two weeks, and 77 percent did not offer incentives.
“When you sell low, you can buy low. But when you sell high, you’ll need to buy high. We must keep that in context,” Riley said.
“The key to successfully navigating the real estate market in the coming year is to partner with a professional. We can help you find the home you want, evaluate what you need to do to update your current home to sell now or age in place, and refinance, if needed, when the time is right,” Riley said.
“We can help you get more in 2024. Give us the opportunity and we’ll deliver.”
Carolinas Market Update is targeted to consumers in the Charlotte, Triad, Research Triangle, High Country, Highlands/Cashiers, Asheville/Mountain, and Upstate S.C. regions. It is produced every other month by the Allen Tate Companies and features information, statistics, trends, and predictions about the real estate market in North and South Carolina.
Allen Tate is the Carolinas’ largest real estate company based on closed sales volume, with 75 offices in the Charlotte, Triad, Triangle, High Country, Highlands/Cashiers and Asheville/Mountain regions of North Carolina and the Upstate of South Carolina. Allen Tate offers the advantage of hometown service with international capabilities and the latest in real estate technology and maximum marketing exposure. Visit www.allentate.com for more information.
