Market Update: Early Spring 2024

Signs of a healthy spring market indicate purchasers are done waiting for interest rates to drop further. Many sellers have received offers quickly on properties new to market since late January. This is a welcome sign compared to Q4 2023, when the general brokerage community struggled to achieve competitive scenarios early on in a listing’s timeline.

And yet, some entry-level apartments, indicated as such by price, are receiving healthy engagement, but first-time buyers are ultimately slow to strike. Engagement (ie, click-throughs, open house foot traffic, promises of making offers) is healthy, but these purchasers are slow to throw their hats in the ring in a meaningful way. (For more info see Fannie Mae’s Home Purchase Sentiment Index.)

Of course, excluded from this sluggishness are unique/unicorn homes with curb appeal, which, if priced correctly, will always trade quickly regardless of market conditions.

Although headlines suggest interest rates will decline this year, there is no guarantee when and by how much. Indicators such as the housing market index used by National Association of Home Builders show, overall, developers’ confidence is increasing while they remain somewhat cautious.

These relatively higher interest rates impact large sections of the national market, sometimes making home purchases cost prohibitive. Developers are likely considering these factors when assessing potential projects.