The real estate market has already hit the bottom in 2023. My prediction along with many other bankers and now also the (National Association of Realtors) NAR Chief Economist is that we have already reached the peak in terms of interest rates. Every banker that I speak to says that interest rates will go down next year. UBS says, “the Federal Reserve will shock markets with aggressive interest rate cuts next year.” I think “shock the market” may be a bit strong, but I do think rates will go down. UBS also claims that unemployment will rise in 2024, economic growth will keep slowing in 2024, and disinflation will continue in 2024. All of those factors will push the Federal Reserve to react and lower interest rates. The NAR Chief Economist says existing home sales will rise by 15% in 2024 due to pent up buyer demand and falling interest rates. He also predicts that interest rates will be between 6% and 7% by the spring.
This does not mean that you can go house shopping and ask for deep discounts from the listing price. The inventory of homes for sale is still very tight, and sellers are getting the prices they are asking for. Right now, your competition will be less and you will be buying at a lower price compared to when interest rates go down and lots of people are again bidding on few homes.
Call Nathan Walldorf to help you with you next move 423-544-7700.