In a dynamic real estate landscape, staying ahead of the curve is crucial. Recently, our dedicated agents at Corcoran Urban Real Estate attended the 2024 CAR Market Outlook event, gaining valuable insights into the future of the market. Let's delve into the top takeaways from this event, featuring expert perspectives on residential and commercial real estate trends.
Increase in Sellers in the Market:
Dr. Lawrence Yun, from the National Association of REALTORS®, shared a compelling perspective on the residential outlook. Over the past two years, potential sellers have been holding off on listing their homes. However, life goes on, and factors like new additions to families, changes in marital status, and the desire to downsize or switch jobs persist. Dr. Yun predicts that as interest rates decline to around 6%, more homeowners will feel empowered to sell, leading to a potential 19% increase in new home sales and a 13% increase in existing home sales.
Interest Rates Peaked, but 3% Rates Unlikely:
One of the key highlights was the discussion on interest rates by Dr. Yun. While rates reached a high of 8% in October, they are expected to gradually decrease to the range of 6 to 7% by early spring. Factors influencing this drop include softening rents due to increased apartment construction, challenges faced by community banks amid high interest rates, and an abnormal spread between the 10-year treasury and 30-year mortgage rates. However, Dr. Yun emphatically stated that sub-3% mortgage rates are unlikely to return in his lifetime.
The 2024 CAR Market Outlook event provided our agents with invaluable insights into the real estate landscape for the upcoming year. As we anticipate more sellers entering the market and witness the evolution of interest rates, our commitment at Corcoran Urban Real Estate remains unwavering. We are here to guide you through these changes with the same warmth, professionalism, and style that define our brand. Stay tuned for a successful and transformative year in real estate!
Top Takeaways from the 2024 Market Outlook | Chicago Association of REALTORS®