CoreLogic is predicting that housing will remain stable in 2023 and in key housing markets, they expect prices to continue rising. Interest rates have also been trending downwards but if inflation ramps up, don't be surprised if lending criteria tightens and mortgage repayments become more expensive.
The federal funds rate was slashed 1 point in 2024, but don't expect mortgage rates to fall below 5.5%, based on historical data. If you can afford a down payment, closing costs, mortgage payment, taxes, insurance and maintenance costs, buying now can build you equity, with the option to refinance if rates fall.
There are no signs that the U.S. housing market is about to crash. In fact, the economic outlook and expectations for the real estate market nationally were positive for 2024. A housing crash occurs when demand drops dramatically and home values tumble.
Here are some qualities to keep an eye out for: misaligned doors, cracks in the walls, sloping in the floor, and the windows are hard to open or has cracked glass. If you notice a lot of these qualities during a house tour, have an inspector take a look at the foundation before committing to the home.
A "red-tagged" structure has been severely damaged to the degree that the structure is too dangerous to inhabit. Similarly, a structure is "yellow-tagged" if it has been moderately damaged to the degree that its habitability is limited (only during the day, for example).
You might benefit from waiting a few months, says Brian Rudderow, a real estate investor at HBR Colorado. "I'm personally holding off buying until later in the year, specifically fall of 2025, because mortgage rates are expected to drop again along with home prices.
Credit data shows: There's no housing crash coming
The housing bubble crash theory has failed once again as we approach the end of 2024, but it's always important to know why something didn't happen.
10 markets with the biggest drops in home prices
Miami, Florida — 12.4% Cincinnati, Ohio — 9.5% San Francisco, California — 8.9% Kansas City, Missouri — 8.4%
If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now can still be a smart move. But if your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait.
Today's rates seem high compared with the recent 2% rates of the pandemic era. But experts say getting below 3% on a 30-year fixed mortgage is unlikely without a severe economic downturn.
That cost depends on numerous factors like inflation and real estate trends. According to the Census, homes sold for a median price of $420,700 in January 2024. Thankfully, you don't need to pay off that amount all at once. A down payment that's 20% to 25% of a home's value can help you secure a property.
Bottom Line. As rates came down at the end of the summer, sellers started to trickle back into the market, which means buyers have more choices right now. And working with a trusted local real estate agent is the best way to take advantage of your new options before they're all scooped up.
Many prospective homebuyers chose to wait things out in 2023, in the hopes that 2024 would bring a more advantageous market. But with mortgage interest rates remaining relatively high and housing inventory remaining stubbornly low, it looks like the last few months of 2024 will remain a challenging time to buy a house.
Renters come out ahead in at least seven major cities in California; there, long-term renting is cheaper than owning a home. Renters save $900,540 on average in California over a 30-year period. On average, owners saved $175,811 over a 30-year period.
A sharp decline in home values is one of the most immediate consequences of a housing market crash. For homeowners, this means that the equity they've built up over time can quickly erode. This decline can leave homeowners in a precarious financial position, particularly those who bought at the peak of the market.
California has become a recent hotspot for rising mortgage rates and some residents are either face foreclosure or relocating to other states with lower housing prices. In related news, mortgage delinquencies were also up in October, indicating a downturn as the housing market shifts into 2025.
If you purchase a home with a lower price but a higher interest rate, your down payment can be more affordable. For example, let's say you purchase a $220,000 home while interest rates are high. You can put down a 20% down payment, or $44,000, and get a 30-year fixed-rate mortgage with a 6.25% interest rate.
What Are the Best Months to Buy a House in California? March to June are the best months to buy a house in California. During these months, low competition and competitive prices can get you a good deal on your future home.
Fannie Mae: Fannie Mae's latest forecast predicts that 30-year mortgage rates will drop to 6.20% by the end of the year. Its forecast for 2026 has rates falling to 6.10%. Freddie Mac: In their December outlook, Freddie Mac researchers said they believe mortgage rates will go down "very gradually" in 2025.
The purpose of each report is as follows: Preliminary Public Report a.k.a. “Pink” report – printed on pink paper. Allows the subdivider to advertise the project and to take reservations and deposits. No Purchase contracts may be signed under this report and all deposits are refundable.
A yellow Utility-Billing door tag will be generated if an account is delinquent and has a final notice warning that has been issued and expired, it will become eligible for a door tag or "Final Warning of Pending Utilities Services Termination."
Your city code enforcement department or other government entities red tag homes they consider to be unsafe to occupy. This can happen due to fire damage, or natural disasters such as tornadoes and flooding. Code enforcement also red tags homes to stop renovations without permits from continuing.