April 2024 Housing Market Update

Central Virginia Housing Market Update for April 2024

Welcome to your Central Virginia housing market update for April 2024! In this blog post, we'll dive into the latest trends and insights in the local housing market, with a focus on housing inventory and mortgage rates. Let's get started!

Housing Inventory Levels

The national news brings good news as year-to-date housing inventory is higher than it has been since 2021. In fact, 45 of the 50 largest metros are experiencing increased inventory levels. However, there is still a concern as housing inventory remains well below the levels seen between 2017 and 2020. This shortage means that demand continues to outpace supply in the current market.

In our local Metro Market, new listings over the last five years reveal a trend of limited inventory paired with high demand. This combination leads to very low days on market and continued increases in the median home price.

Mortgage Rates and Predictions

As of March 20th, the Federal Reserve has maintained the federal funds rate between 5.25% and 5.5%, without any immediate cuts. Although future rate cuts are predicted, we have not yet seen a significant drop in mortgage rates. When rates do decrease, expect to see a surge in demand and activity in the housing market. This change may encourage both buyers and sellers to enter the market.

Mortgage rate predictions from various organizations, including Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors, suggest that rates will settle around 6% by the fourth quarter of this year. A drop in rates is expected to accelerate price appreciation, leading to faster and higher price increases.

Tips for Sellers

If you're considering selling your home, now is an ideal time. Demand is high, inventory is low, and sellers are achieving record prices. To maximize your opportunity, try to list your home before June, as the market tends to slow down during the summer months.

Another option for sellers is to hold onto their current property as a rental. This can provide a steady income stream while allowing you to take advantage of favorable long-term debt.

Tips for Buyers

For buyers, it's important to stay ahead of potential price appreciation. If you can afford to buy now, consider doing so before rates drop and prices climb further. You can refinance in the future once rates fall.

Keep in mind that the market remains competitive even with higher mortgage rates. Be prepared to face multiple bids and tight competition. Additionally, work with your real estate agent to communicate with sellers and understand their priorities beyond just price.

Conclusion

That's your Central Virginia housing market update for April 2024! We hope this information helps you navigate the current market landscape. If you have any questions, concerns, or thoughts, please leave a comment or reach out to us directly. Thanks for tuning in, and we'll see you next month!

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