Market Update: Summer 2024

USA Today Homefront asked what advice I’d give to first-time homebuyers in 2024. The article will publish later this month; in the meantime you can read my response here.

Negative trends that started last year have compounded. There’s still an atypical amount of cash in the market, and, in general, purchasers who need mortgages are dissuaded by current interest rates, which are ~6-7%, based on loan type and size.

Cash investors in the entry-level market are aiming to take advantage of a void left by first-time homebuyers sitting on the sidelines. These cash investors are making low offers, hoping to snag properties at discounts. Most sellers balk at these offers, but in some cases, these low offers are the only viable ones.

In general, we’re seeing more homes available for longer, and robust competition has softened a bit. It remains to be seen how the upcoming election and Fed’s behavior relative to rates will impact Q4 2024.

Of course, certain factors such as perfect location and size, plus exceptional charm, will always exclude property from general performance trends. There’s always a fair fraction of NYC homes that receive multiple offers and trade quickly.