What Is The Status Of Housing Affordability This 2024?

By Travis Bard

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Many people are asking how to make houses more affordable. There are a few reasons why houses cost what they do, and you could trace it back to supply and demand. However one big thing that affects affordability is interest rates.

While we might see some changes in interest rates this year, it’s probably not as big of a change as some people initially thought. A lot of people were looking forward, hoping for lots of rate cuts, but realistically, it looks like there will only be one or two. These rate cuts could bring down mortgage rates a bit. Mortgage rates are not exactly the same as the Fed’s interest rates, but they are still connected, and it can affect how affordable houses are.

Current inventory isn’t changing much as of now, and although there are many houses being constructed at a steady pace to meet buyer demand, not so much that the market will have excess supply. There’s also no sign of a big increase in foreclosures, which would add more houses to the market. So, for now, the market is relying on motivated sellers in the resale sector to bring inventory to the market.

With all of that being said, affordability probably won’t change dramatically anytime soon. Prices will likely keep going up a little bit each year, but there probably won’t be a big drop. This is a good time for sellers to get a good price on their house, but buyers can still find ways to make things work for them, such as negotiating seller concessions or exploring financial solutions like rate buydowns.

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