Homes Sales to Improve in ’24 from Current Levels
The highest mortgage rates in 23 years are dragging down home sales to their lowest levels since the subprime crisis period.
Sales of previously owned homes in 2023 are expected to dwindle to a rate not seen since at least 2011, when the U.S. population was smaller and the country was still recovering from one of the worst housing crises ever.
This year’s housing slowdown is very different from the previous one, after the housing bubble of the early 2000s burst. Back then, the economy entered a deep recession and millions of people lost their homes to foreclosure
This time around, home sales have been slowing for more than a year because of rising borrowing costs, record-high home prices and a very limited inventory of homes for sale
Affordability is likely to remain a problem because while mortgage rates are rising, prices aren’t falling…yet.
Focusing solely on the single most important factor in Housing, interest rates, we expect borrowing costs to peak in 4Q of this year, moderate and flat line into 1Q’24, and then start dropping in the second quarter of next year. This will set off the next Housing Mini-Cycle into the back half of 2024.
In the mean time, Liberty Title has made available the latest Lead Generation technology for Realtors and Investors to source new Listings, locate Cash Buyers, and research Investable properties. Contact us if you would like a Demo and a login to the new platform which is accessible from our website (watch our 30 second video on this platform HERE).
