The Housing Market in 2024 – Why It’s Tough for Buyers and What You Can Do About It (Part 1 of a Two-Part Series Featuring Jessica Lautz, Deputy Chief Economist, NAR)

The housing market today looks very different than it did a few decades ago. If you’re between 25 and 40, buying your first home might feel nearly impossible. Prices are high, interest rates are rising, and competition is fierce. But understanding what’s happening in the market—and how to navigate it—can help you make smart decisions.

Why Home Sales Are at Historic Lows

Dr. Jessica Lautz, Deputy Chief Economist for the National Association of Realtors, shared a surprising fact: home sales are at their lowest levels since 1995. Yet, the U.S. population has grown by 75 million people since then. That means demand for homes has skyrocketed, but supply hasn’t kept up.

Why? Several factors play a role:

• Low Inventory: There are fewer homes available today than there were in 1995.

• Slower New Home Construction: Homebuilders aren’t building enough houses to meet demand.

• High Interest Rates: Mortgage rates aren’t expected to drop significantly anytime soon.

• Competition for Affordable Homes: Many people are bidding on the same homes, often driving prices up.

Should You Wait to Buy?

One of the biggest questions buyers ask is, “Should I wait for mortgage rates to drop?” According to experts, waiting may not be the best move. While mortgage rates might go down slightly in the future, home prices are expected to keep rising. That means you could end up paying more for the same home later.

If you’re financially ready, buying now might be a smarter choice—especially since you can always refinance your loan if rates drop in the future.

How Buyers Are Getting Into Homes Today

With prices at record highs, how are people affording homes?

• Higher Incomes: Successful first-time buyers today earn about $103,000 per year—a big jump from previous years.

• Bigger Down Payments: Many buyers are using savings, help from family (the “Bank of Mom & Dad”), or tapping into their 401(k) or investments.

• Creative Financing: Some buyers are looking at first-time homebuyer programs, government-backed loans, and assistance programs to help with affordability.

If you’re thinking about buying a home, it’s important to talk to a local expert who understands the market and can help you find the best options.

Want More Expert Home-Buying Tips?

• 🎥 Subscribe to our YouTube channel for weekly real estate insights.

• 🎵 Tune in to WSB Talk Radio 95.5 FM to hear Deborah Morton discuss the latest market trends.

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• 📋 Get your FREE buyer or seller guide today!

Stay tuned for Part 2, where we dive into home prices, real estate trends, and why owning a home is still the best way to build wealth!