Unlocking Homebuyer Opportunities in 2024

Unlocking Homebuyer Opportunities in 2024

Unlocking Homebuyer Opportunities in 2024

There’s no arguing this past year has been difficult for homebuyers. And if you’re someone who has started the process of searching for a home, maybe you put your search on hold because the challenges in today’s market felt like too much to tackle. You’re not alone in that. A Bright MLS study found some of the top reasons buyers paused their search in late 2023 and early 2024 were:

  • They couldn’t find anything in their price range
  • They didn’t have any successful offers or had difficulty competing
  • They couldn’t find the right home

If any of these sound like why you stopped looking, here’s what you need to know. The housing market is in a transition in the second half of 2024. Here are four reasons why this may be your chance to jump back in.

1. The Supply of Homes for Sale Is Growing

One of the most significant shifts in the market this year is how the months’ supply of homes for sale has increased. If you look at data from the National Association of Realtors (NAR), you’ll see how inventory has grown throughout 2024 (see graph below): No Caption Received

This graph shows the months’ supply of existing homes – homes that were previously lived in by another homeowner. The upward trend this year is clear.

This increase means you have a better chance of finding a home that suits your needs and preferences. And if the biggest reason you put off your home search was difficulty finding the right home, this is a big relief.

2. There’s More New Home Construction

And if you still don’t see an existing home you like, another big opportunity lies in the rise of new home construction. Builders have worked to increase the supply of newly built homes this year. And they’ve turned their attention to crafting smaller, more affordable homes based on what’s most needed in today’s market. This helps address the long-standing issue of housing undersupply throughout the country, and those smaller homes also offset some of the affordability challenges you’re feeling today.

According to data from the Census and NAR, one in three homes on the market is a newly built home (see graph below):No Caption Received

This means, that if you didn’t previously look at newly built homes as part of your search, you may have been cutting your pool of options by a third. Not to mention, some builders are also offering incentives like buying down mortgage rates to make it easier for buyers to get a home that fits their budget.

So, consider talking to your agent about what builders have to offer in your area. Your agent’s expertise on builder reputations, contracts, and more will help you weigh your options.

3. Less Buyer Competition

Mortgage rates are still hovering around 7%, so buyer demand isn’t as fierce as it once was. And when you combine that with more housing supply, you have a better chance of avoiding an intense bidding war. Danielle Hale, Chief Economist at Realtor.com, highlights the positive trend for the latter half of 2024, saying:

Home shoppers who persist could see better conditions in the second half of the year, which tends to be somewhat less competitive seasonally, and might be even more so since inventory is likely to reach five-year highs.”

This creates a unique opportunity for you to find a home you want to buy with less stress and at a potentially better price.

4. Home Prices Are Moderating

Speaking of prices, home prices are also showing signs of moderation – and that’s a welcome shift after the rapid appreciation seen in recent years (see graph below): No Caption Received

This moderation is mostly due to supply and demand. Supply is growing and demand is easing, so prices aren’t rising as fast. But make no mistake, that doesn’t mean prices are falling – they’re just rising at a more normal pace. You can see this in the graph. The bars are still showing prices increasing, just not as dramatic as it was before.

The average forecast for home price appreciation in 2024 is for positive growth around 3% to 5%, which is more in line with historical norms. That moderation means that you are less likely to face the steep price increases we saw a few years ago.

The Opportunity in Front of You

If you’re ready and able to buy, you may find that the second half of 2024 is a bit easier to navigate. There are still challenges, but some of the biggest hurdles you’ve faced are getting better as time wears on.

On the other hand, you could choose to wait. But if you do, here’s the risk you run. As more buyers recognize the shift in the market, competition will grow again. On a similar note, if mortgage rates do come down (as forecasts say), more buyers will flood back into the market. So, making a move now helps you take advantage of the current market conditions and get ahead of those other buyers.

Bottom Line

If you’ve put your dream of homeownership on hold, the second half of 2024 may be your chance to jump back in. Let’s connect to talk more about the opportunities you have in today’s market.

Most agents know what’s happening.

Good agents understand what’s happening.

Great agents can explain what’s happening.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

N.A.R. Lawsuit Settlement Fact Sheet for Utah

N.A.R. Lawsuit Settlement Fact Sheet for Utah

Lawsuit Settlement Fact Sheet – Utah Changes

Changes
While changes will be minimal in Utah because of the state’s pro-consumer laws and customs, Utah REALTORS® are committed to helping buyers and sellers understand and navigate the changes. Key settlement terms affecting consumers include the following:

Written Agreements with Buyers

  • Utah REALTORS® are already using written, transparent agency forms with their buyer clients as required by the settlement. While this part of the settlement will be a significant change across the country, in Utah we’ve required this for decades.
  • The practical change we’ll see in Utah is that buyers will need to sign this agreement with their agent before touring homes.

Disclosures to Sellers

  • Utah REALTORS® are already providing the seller disclosures required under the settlement The Utah Association of REALTORS® lisIng agreement discloses to the seller that the lisIng broker may share an amount of their compensation with a buyer broker. The seller signs and consents to this. The agreement also explains that brokerage fees are not set.
  • There is no practical change here as the se+lement’s required disclosures are already included in the standard listing agreement used in Utah. There will be some minor changes to the listIng agreement to make sure it aligns with the settlement.

Compensation Sharing

  • While listing brokers will no longer offer to offset the cost of the buyer’s agent on the MLS and in the published MLS listing, listIng brokers may continue to offset the cost of the buyer’s representation in negotiations that take place off the MLS.

 

Negotiation and Compensation – Buyers and sellers will continue to have opinions regarding how they work with a REALTOR® and negotiate compensation.

  1. Buyers will continue to have the option to ask the listing broker to offset the cost of their buyer agent through a compensation-sharing agreement. The practical change is that compensation-sharing agreements will now be negotiated off the MLS. In other words, the listing agent can still offer compensation to the buyer agent, but the offer will no longer be published in the MLS listing. This already happens in many transactions. Offers of compensation increase affordability for buyers, and sellers benefit because the offer to offset the buyer’s cost of representation makes the
    home more attractive to buyers.
  2. Buyers will continue to have the option to directly ask the seller to pay for the cost of their buyer agent during the real estate negotiation.
  3. Buyers will continue to have the option to pay their agent directly.
  4. Buyers will continue to have the option to use a combination of Options 1, 2, and 3.

Compensation

  • Utah buyers and sellers have many choices for real estate services. Examples include full service, flat fee, for sale by owner, etc.
  • There is no set or standard commission. CompensaIon is and will remain entirely negotiable between agents and their clients.
  • Utah consumers will continue to have real estate choices and will continue to negotiate the cost based on the value and services provided.

 

Benefits of Using a REALTOR® Utah REALTORS® remain committed to helping consumers navigate the most important transaction of their lives.

Buyer Agent

  • Buyer agents represent the unique interests of the buyer.
  • Buyer agents often save their clients thousands of dollars by helping them avoid costly mistakes in large, complex transactions.
    • Buyer agents research properties and schedule showings to make it easy for buyers to quickly access all the properties that meet their requirements.
    • Buyer agents help buyers understand the current market dynamics to help buyers make competitive offers and avoid overpaying for a property.
    • Buyer agents help buyers understand complex real estate legal paperwork.
    • Buyer agents negotiate the best price and terms for the buyer.
    • Buyer agents help buyers avoid costly mistakes by providing guidance about important research to conduct before buying (e.g., disclosure review, inspections, HOA document review, neighborhood information, property tax information, zoning, property records, etc.)
    •  Buyer agents help buyers navigate the process from start to finish (e.g., home search, market education, preparing an offer, negotiation, inspections and due diligence, mortgage information, Title, and closing).

Listing Agents

  • Listing agents represent the unique interests of the seller and help them avoid costly mistakes.
  •  Listing agents work to sell the seller’s home quickly and for the best price and terms.
    • Listing agents objectively analyze the market and help the seller price the home competitively.
    •  Listing agents research the property’s Itle, property records, zoning, square footage, HOA, etc. to prepare the home to be sold.
    •  LisIng agents provide objective advise to help sellers enhance marketability and maximize price.
    • Listing agents market the property to the largest pool of potential buyers, manage showings, and get feedback from buyers.
    • Listing agents negotiate the best terms and price on behalf of the seller, and help the seller evaluate strengths and weaknesses of offers.
    • Listing agents help sellers understand and navigate the legal paperwork, required disclosures, laws and regulations, and closing documents.

 

Courtesy of Utah Association of Realtors®

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

Why Moving to a Smaller Home After Retirement Makes Life Easier

Why Moving to a Smaller Home After Retirement Makes Life Easier

Why Moving to a Smaller Home After Retirement Makes Life Easier

Retirement is a time for relaxation, adventure, and enjoying the things you love. As you imagine this exciting new chapter in your life, it’s important to think about whether your current home still fits your needs.

If it’s too big, too costly, or just not convenient anymore, downsizing might help you make the most of your retirement years. To find out if a smaller, more manageable home might be the perfect fit for your new lifestyle, ask yourself these questions:

  • Do the original reasons I bought my current house still stand, or have my needs changed since then?
  • Do I really need and want the space I have right now, or could somewhere smaller be a better fit?
  • What are my housing expenses right now, and how much do I want to try to save by downsizing?

If you answered yes to any of these, consider the benefits that come with downsizing.

The Benefits of Moving into a Smaller Home

There are many reasons why you should downsize. Here are just a few from Bankrate:No Caption Received

Your Equity Can Help Make Downsizing Possible

If those perks sound like something you’d want, you may already have what you need to make it happen. A recent article from Seniors Guide shares:

“And at a time when homeowners age 62 and older have more than $12 trillion in home equity, downsizing makes sense . . .”

If you’ve been in your house for a while, odds are you’re one of those homeowners who’s built up a considerable amount of equity. And that equity is something you can use to help you buy a home that better fits your needs today. Greg McBride, Chief Financial Analyst at Bankrate, explains:

“Downsizing can mean taking that equity when the home is sold and using it to pay cash or make a large down payment on a lower-priced home, reducing your monthly living expenses.”

When you’re ready to use all that equity to fuel your next move, your real estate agent will be your guide through every step of the process. That includes setting the right price for your current house when you sell, finding the home that best fits your evolving needs, and understanding what you can afford at today’s mortgage rate.

Bottom Line

Starting your retirement journey? Think about downsizing – it could really help. When you’re ready, let’s connect.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

Why Your Asking Price Matters Even More Right Now

Why Your Asking Price Matters Even More Right Now

Why Your Asking Price Matters Even More Right Now

If you’re thinking about selling your house, here’s something you really need to know. Even though it’s still a seller’s market today, you can’t pick just any price for your listing.

While home prices are still appreciating in most areas, they’re climbing at a slower pace because higher mortgage rates are putting a squeeze on buyer demand. At the same time, the supply of homes for sale is growing. That means buyers have more options and your house may not stand out as much, if it’s not priced right.

Those two factors combined are why the asking price you set for your house is more important today than it has been in recent years.

And some sellers are finding that out the hard way. That’s leading to more price reductions. Mike Simonsen, Founder and President of ALTOS Research, explains:

“Looking at the price reductions data set . . . It all fits in the same pattern of increasing supply and homebuyer demand that is just exhausted by high mortgage rates. . . As home sellers are faced with less demand than they expected, more of them have to reduce their prices.”

That’s because they haven’t adjusted their expectations to today’s market. Maybe they’re not working with an agent, so they don’t know what’s happening around them. Or they’re not using an agent who prioritizes being a local market expert. Either way, they aren’t basing their pricing decision on the latest data available – and that’s a miss.

If you want to avoid making a pricing mistake that could turn away buyers and delay your sale, you need to work with an agent who really knows your local market. If you lean on the right agent, they’ll help you avoid making mistakes like:

  • Setting a Price That’s Too High: Some sellers have unrealistic expectations about how much their house is worth. That’s because they base their price on their gut or their bottom line, not the data. An agent will help you base your price on facts, not opinion, so you have a better chance of hitting the mark.
  • Not Considering What Houses Are Actually Selling for: Without an agent’s help, some sellers may use the wrong comparable sales (comps) in their area and misjudge the market value of their home. An agent has the expertise needed to find true comps. And they’ll use those to give you valuable insights into how to price your house in a way that’s competitive for you and your future buyer.
  • Overestimating Home Improvements: Sellers who have invested a significant amount of money in home improvements may overestimate how much those upgrades affect their home’s value. While certain improvements can increase a home’s appeal, not all upgrades are going to get a great return on their investment. An agent factors in what you’ve done and what buyers in your area actually want as they set the price.
  • Ignoring Feedback and Market Response: Some sellers may be resistant to lowering their asking price based on feedback they’re getting in open houses. An agent will remind the seller how important it is to be flexible and respond to market feedback in order to attract qualified buyers.

In the end, accurate pricing depends on current market conditions – and only an agent has all the data and information necessary to find the right price for your house. The right agent will use that expertise to develop a pricing strategy that’s based on current market conditions and designed to get your house sold. That way you don’t miss the mark.

Bottom Line

The right asking price is even more important today than it’s been over the last few years. To avoid making a costly mistake, let’s work together.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

Things To Avoid After Applying for a Mortgage

Things To Avoid After Applying for a Mortgage

Things To Avoid After Applying for a Mortgage

No Caption Received

Some Highlights

  • There are a few key things you’ll want to avoid after applying for a mortgage to make sure you’re in the best position when you get to the closing table.
  • Don’t change bank accounts, apply for new credit, make any large purchases or transfers, and don’t co-sign loans for anyone.
  • Here’s a good rule of thumb. Always connect with your loan officer before making any financial decisions once you’ve started the mortgage process.

Marty Gale

Buy or Sell with Marty Gale

"Its The Experience"

Principal Broker and Owner of Utah Realty™

Licensed Since 1986

CERTIFIED LUXURY HOME MARKETING SPECIALIST (CLHM)

PSA  (Pricing Strategy Advisor)

General Contractor 2000 (in-active)
e-pro (advanced digital marketing) 2001
Certified Residential Specialist 2009

Certified Negotiation Expert 2014

Master Certified Negotiation Expert 2014
Certified Probate Specialist Since 2018

Senior Real Estate Specialist

Certified Divorce Specialist CDS

 

Contact me! 

 

 

Real Estate Is the Best Investment

Real Estate Is the Best Investment

Did you know?

Real estate has been voted the best long-term investment for 12 years straight.

That’s because history shows home values usually go up. And when that happens, it helps homeowners grow their net worth.

So, if you’re debating renting or buying, remember to factor this into your decision.

When you’re ready to start your homeownership journey, let’s connect.

#equity #homeownership #utahrealty

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