What will the rest of the year bring?

As we enter the last quarter of 2024, we take a look at expectations for what the rest of the year brings and what factors will keep the market on track, or derails it completely 

Interest Rate Stabilization

After a period of rising interest rates where it felt like there was an interest rate rise every five minutes, many analysts predict that rates may continue their current stabilised path or even decrease slightly by the end of 2024. This could encourage more buyers to enter the market, especially if mortgage rates become more favourable, potentially leading to increased demand and a slight uptick in house prices.

Continued Demand for Housing

Despite economic uncertainties, the demand for housing is expected to remain strong. Factors such as millennial homebuying, demographic shifts, and the ongoing need for affordable housing will likely drive interest in the market. As more millennials reach prime homebuying age, their entry into the market could significantly impact demand.

New Builds

The inventory of homes for sale is anticipated to remain a challenge. While new construction has been promised by this new government, it often takes time to meet demand, and existing home inventory may not see substantial growth due to homeowners opting to stay put amid any uncertainty. This limited supply could continue to put upward pressure on prices, particularly in desirable locations.

Growth of Remote Work and Relocation Trends

Remote work remains a significant factor influencing housing choices. As more companies adopt flexible work policies, individuals may continue to seek homes in suburban or rural areas, leading to price increases in these regions. Cities that were once considered secondary markets may rise in prominence as people relocate for lifestyle changes.

Sustainability and Green Housing

a subject that divides many opinions but an increasing emphasis on sustainability and energy-efficient homes is expected to shape buyer preferences. Features such as solar panels, energy-efficient appliances, and sustainable building materials will likely become more sought after, influencing both new construction and renovations.

Potential Economic Headwinds

While the overall outlook may be positive, economic challenges such as inflation, job market fluctuations, and geopolitical tensions could impact consumer confidence and spending. If economic conditions worsen, it may lead to a slowdown in the housing market and with a budget on the horizon, who knows what to expect?

Rental Market Dynamics

The rental market is also expected to remain robust as housing affordability becomes a growing concern. Increased demand for rental properties may result in higher rents, particularly in urban areas where the cost of homeownership is prohibitive for many.

The housing market in the remainder of 2024 is poised to be shaped by a combination of stabilizing interest rates, continued demand, and inventory challenges. As buyers, sellers, and investors navigate this landscape, staying informed about market trends and economic indicators will be essential for making well-informed decisions. Whether you’re looking to buy, sell, or invest, understanding these expectations can help you better prepare for the opportunities and challenges that lie ahead.