It’s no secret the housing market has been a whirlwind over the past few years, so it’s only natural that many may be feeling overwhelmed and uncertain about what the future holds for the 2024 market.
As the president of note. A Mortgage Agency, plus 27 years of real estate experience under my belt, I have witnessed the market’s ups and downs once or twice before. I’ve seen housing prices fluctuate and the market shift from high demand and bidding wars to cold and stagnant. However, after analyzing the key factors that will shape 2024, I’m feeling optimistic.
In this article, I, along with note. vice presidents Joey Ciaglia and Amee Klassen will offer expert insights and predictions to guide your homebuying decisions.
Predictions and projections for 2024
As we gear up for substantial changes in 2024, marked by decreasing interest rates, a surge in demand and ample opportunities for growth, the upcoming year promises to be an interesting one. Let’s look at how these factors may impact and benefit you.
1. Lower interest rates
In the last 18 months, we have experienced some of the highest interest rates in decades. This has caused a lot of stress for potential homebuyers and has resulted in a slower housing market. However, many experts are predicting there will be some relief in 2024.
Although there is no perfect way to determine the best time to buy a home based on interest rates, the general trend of decreasing rates is promising for those looking to become homeowners. As rates go down, the affordability of homes is likely to increase, presenting a good opportunity for those who want to enter the housing market.
Recent months have seen a decline in rates, prompting conventional buyers to secure rates in the mid-6s, while some Federal Housing Administration buyers have locked in rates below 6 percent. Personally, I anticipate the possibility of rates ranging between the mid-5s and mid-6s in 2024.
2. Return of high demand
Currently, homebuyers have a decent selection of properties despite the lower stock, which gives them the luxury of looking around, placing offers and adding contingencies. The upcoming year is expected to bring another high-demand housing market, much like what we saw in 2020 and 2021.
As the weather warms up and interest rates go down, there will likely be an uptick in the market. If this occurs, the market will favor sellers come spring, leading to bidding wars, fast turnaround times and a highly competitive environment overall. Those who can get into the market early will have an advantage and won’t feel as much pressure compared to those who wait.
3. Growth in Las Vegas
Las Vegas is a unique market that is rapidly growing and expanding in new ways.
The area has been positioned as a hot spot due to the influx of baby boomers from high-tax states. Las Vegas draws those looking for an absence of state taxes, lower cost of living, mild winters and an abundance of amenities. I predict we will see considerable growth in the city’s population over the next few years, as our market has already seen a strong appreciation. The forecast nationwide is to see appreciation between 4.5 percent to 5 percent in 2024.
The city’s growth is also highlighted by expanding new communities and launching ambitious projects such as Sony Pictures, the A’s baseball team and Brightline’s high-speed train. For those considering investing in the Las Vegas market, now presents a unique opportunity to jump into the city’s expansion.
Top tips for homebuyers
Navigating the confusion of what to do when faced with expectations and predictions can be challenging. Here are top tips from our leaders Ciaglia and Klassen, in addition to my take on an evergreen market outlook.
1. Ciaglia: Keep an open mind for FHA vs conventional financing
If you plan to buy a home but don’t have much money saved up for a down payment, consider getting a loan from the FHA or a conventional lender. Both options have advantages, but there are some differences to be aware of.
With an FHA loan, you can buy a home with a smaller down payment. For example, you can buy a home at $516,000 with just a 3.5 percent down payment. However, you will have to pay mortgage insurance premiums, which are fees that protect the lender in case you default on the loan. In Clark County the new loan limit for 2024 is $498,257.
With a conventional loan, you may have to put down a larger down payment, but you may be able to avoid some of the mortgage insurance premiums. The premiums will be based on your down payment and credit score. The new conventional loan limit for Clark County has been increased to $766,550 for 2024.
It’s important to know your debt ratio, which is the percentage of your income that goes toward paying your debts. With a conventional loan, you can’t have a debt ratio higher than 50 percent, while with an FHA loan, you can have a higher ratio of up to 56 percent, depending on certain factors.
Understanding these differences will help you make an informed decision when you’re ready to buy a home. Keep an open mind and speak to an expert about what is right for you and your situation.
2. Klassen: Waiting isn’t always winning
In recent years, the real estate industry has shown that delaying a decision might not be the best strategy. Whether you’re a first-time homebuyer, looking to upgrade or invest, it’s important to act now. Start developing your strategy, aligning your goals and building your generational wealth portfolio. Real estate has always been a crucial element in creating lasting financial success, and the sooner you enter the market, the more time your investment has to grow and appreciate.
Buyers face a major decision when purchasing a home. Acting promptly matters in today’s shifting real estate landscape due to fluctuating rates, market conditions and property values. Waiting risks increased uncertainty.
Don’t wait on the sidelines — consider this your invitation to the playing field. Seize the moment, explore your options and kick start your homeownership journey.
3. My advice: Buy now, refinance later
Many people have considered buying a new home, investing in real estate or purchasing their first property. Yet, they have hesitated due to current interest rates. While this is a legitimate concern, it’s essential to remember that one can always buy now and refinance later.
If you are already a homeowner, you may be hesitant to refinance your 3.75 percent interest rate to 6.5 percent. Although, when you look at the big picture, refinancing with the right tools and support team can help your financial situation. For example, many people carry significant credit card debt with interest rates over 20 percent, and they take car loans with interest rates over 9 percent. Refinancing can save you hundreds of dollars a month when you factor in all this debt. You can then apply those savings to your mortgage to reduce your loans. Always remember to look at the big picture, it will save you money in the long run.
Finding your perfect home can be a daunting yet fulfilling journey, but as we enter a new year, I’m optimistic that many buyers will take advantage of the evolving market and finally secure their dream home. Start learning, find a trustworthy team and make 2024 your year.
— Tim Deibert, president of note. A Mortgage Agency, boasts 27 years of expertise in the Las Vegas real estate market. Formerly the vice president of All Western Mortgage, Tim consistently outperforms industry standards with an average close time of under 18 days in Clark County. Educated in finance at Mt. Royal College in Calgary, Canada, he began his mortgage career in New York in 1996 and relocated to Las Vegas in 1997.
— Ciaglia, vice president of note., is a prominent figure in the Las Vegas mortgage scene, with 22 years of experience. Specializing in purchase loans with expertise in conventional, FHA, Veterans Affairs and jumbo financing, he has closed thousands of successful transactions in his career. In 2021 and 2022, he earned recognition from one of the nation’s largest mortgage lenders as a Top Mortgage Loan Officer in Nevada, Top 20 Mortgage Loan Officer in the Country and Top Purchase Loan Officer in Nevada.
— Klassen, vice president of note., transitioned to the dynamic field of residential mortgage in Las Vegas after initially honing her customer experience skills in the hospitality industry. Having made her mark in the financial sector, she embarked on her mortgage career, obtaining national certification in early 2015.