Top 2024 Predictions for Chelsea, Dexter, Saline Real Estate Market

TL/DR –

The real estate market in 2024 is expected to closely resemble the previous year, with low inventory, higher prices, and short days on the market due to the aftermath of the 2008-9 housing correction and the Federal Reserve’s easy money policy. The 30-year fixed mortgage rate is hovering around 6.94%, and with the economic data appearing robust, these rates are likely to remain at their new higher normal. Furthermore, the inventory of properties for sale will remain low, resulting in higher prices and quickly sold properties, while property value will increase for those with a low fixed rate mortgage.

2024 Real Estate Market Predictions: What to Expect

The 2024 real estate market will mirror last year – higher interest rates, low inventory, increased prices and short days on market, reflecting ongoing dysfunction.

After the 2008-9 housing correction, builders understandably produced fewer new homes. Many homeowners now have a mortgage rate between 2-4%, disincentivizing them from selling.

If you own a property that generates cash flow with a low interest rate mortgage, consider renting it out and using your equity to purchase a new house.

2024 Mortgage Interest Rates Forecast

The current 30-year fixed rate mortgage is approximately 6.94%, a slight increase from last year’s 6.92%.

Rates dipped briefly in January due to anticipated Federal Reserve rate cuts. However, as this didn’t materialize, rates rose again. With strong economic data, the Federal Reserve may not cut rates as expected.

2024 Property Inventory Forecast

Property inventory in Washtenaw County will remain low, as suggested by data from the Ann Arbor Area Board of Realtors.

2024 Property Prices Forecast

Low inventory will keep prices high. Median sales prices are currently up 5.2% compared to last year, which saw a 10% increase.

2024 Days on Market Forecast

Low inventory will keep days on market short. Properties in good condition sell quickly, and days on market are down 12.1% in February compared to last year.

Prospects for the Rest of 2024

For homeowners with a low fixed rate mortgage, property values will rise without significantly affecting mortgage payments. Sellers are set to benefit, but buyers may need to look for properties to add value to avoid paying list price. Renters should negotiate rent increases.

While 2024 may look similar to last year, there are still opportunities to succeed in the real estate market.

—
Read More US News