Our economy is ever changing and the housing market with it. Our clients whether buyers or sellers trust our market expertise and knowledge and we are here to provide some of the answers to the most frequently asked questions amongst our clients.
1. What is the interest rate forecast and how will it affect the market?
According to tthe National Association of Realtors anticipates mortgage interest rates dropping to 6% in 2024 and Mortgage Bankers Association is predicting that they settle and stablilize around 5%. Looking at the data from various analysts, the forecast for mortgage rates for the next 5 years will vary between 5-7%. While predicting the rates over the course of 5 years is a tall order, lower the rate the hotter the market is.
Like we saw when rates were below 3%, the demand for mortgages skyrocketed, creating an inventory shortage in many housing markets. The 5-7% rates we’ll be seeing may help us get back to a balanced housing market.
2. Will my value stay in my home?
When mortgages rates lower and stabilize, buyers that missed out on purchasing a home in 2023 or earlier due to higher rates, or competition, it’s predicted they will be making an appearance in 2024. This means the increase in housing demands will keep us in a seller’s market and home values will stay as they are or increase depending on demand for your area/home.
3. How can I compete in the current housing market as a buyer?
There are several things that can help you compete and the first and foremost is finding an agent that knows and understands the competitive nature of our market. A knowledgeable realtor who knows winning strategies to help get your offer in winning position is key with the current housing market. Also knowing your spending power with a competent lender is incredibly important.
4. What is the percentage I should be paying in mortgage based on income?
The most common rule for mortgage and/or housing payments is that you shouldn’t spend more than 28% of your gross income on it. This should account for every aspect of your home loan like the principal, interest, taxes, and and home owner’s insurance.
5. What home updates will I get the most value back on my property?
Kitchens and bathrooms remodels are always going to be a great return on investment. According to Bankrate the top renovations items that will increase your property value in 2024 are: new garage door, new entry door, stone veneer, a kitchen remodel, new siding, a deck addition, a bathroom(s) remodel, and HVAC conversion
6. There seems to be low inventory and lack of properties for sale-when will inventory increase?
In Wisconsin our busiest season with an increase of inventory is always the Spring time. You’ll often hear realtors refer to the “Spring Market” as that is when buyers and sellers are at it’s peak.
