Predictions have been rolling in as to what we might expect to see in 2024. These prognostications are based on nationwide trends and the feeling is unanimous that 2024 is going to be a much more action packed real estate market than 2023. The decrease in mortgage interest rates, which started at the end of 2023, is expected to continue and bring more buyers into the market.
Of course, our Northern Virginia market is still hurting for inventory nearly all over, so more buyers entering the market will mean steeper increases in values. Buyers who have been waiting on the sidelines for rates to drop may be kicking themselves that they didn’t get out and buy when rates were higher because refinancing a home they own would be easier than competing for one in a frenzied market. Fierce competition is expected.
The Northern Virginia marketplace is susceptible to a lull in activity in Presidential election years. Our market tends to hold its breath from June to November during Presidential election cycles. The exception to that rule was 2020, when real estate demand was full throttle right through it all. It is possible that 2024 may more closely resemble 2020 in real estate terms, but only time will tell. Sellers not wanting to feel that potential lull in activity would be wise to list before June.
The real wild card for the beginning of 2024 will be whatever Mother Nature throws at us for the first quarter in terms of snow and icy weather. The prediction is for more snowfall and possibly a blizzard or two. Winter weather will stop most buyers in their tracks. I remember Snowmaggedon of 2009-2010 when three blizzards gave us record amounts of snowfall. We were all running out of room to put the snow we had shoveled or plowed. Those snowy weeks were excellent opportunities for buyers willing to brave the elements and keep up the house hunt when most were sitting it out.
No matter what your plans for 2024, your own needs and time frames will trump whatever is going on in the market. Let’s discuss your particular situation and figure out how best accomplish your real estate goals in 2024.