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What will the 2024 spring homebuying season look like?
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The official start of spring is less than a month away, and some homebuyers are already anticipating a busy season. Historically, spring is an active period for home sales, and this year, some positive economic developments may add fuel to the fire.
After spending the better part of two years raising interest rates to curb inflation, the Federal Reserve is widely expected to lower the benchmark interest rate range in 2024, possibly beginning in March. Already, lenders have begun to price in lower mortgage rates and home loan rates could drop even further if the Fed follows through and cuts the rate.
Additionally, cooling inflation could stabilize living costs, allowing homebuyers to allocate more of their income toward a down payment and mortgage payments. Amid this backdrop, homebuyers may be assessing the market and trying to gauge how the spring homebuying season will shake out.
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What will the 2024 spring homebuying season look like?
Let’s break down how potential mortgage rate cuts and inventory changes could affect homebuyers and what approach could help you navigate the season.
How will mortgage rate cuts affect the spring homebuying season?
If mortgage rates drop as expected, we’re likely to see more homebuyers putting offers on homes, which, in turn, will likely drive up home prices.
“If mortgage rates fall throughout the spring homebuying season, the hope is that it will solve the lack of inventory problem by enticing current homeowners to list their property and purchase a new one,” says Brian Shahwan, a mortgage banker and broker at William Raveis Mortgage. “The issue that may arise is that while mortgage rates go down, buyers will have more affordability which could then drive competition and, ultimately, home prices up.”
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What will inventory look like during the season?
High mortgage rates and inventory have been a drag on the housing market in recent years. While mortgage rates could drop this spring, more homeowners could list their homes for sale to increase inventory. But will it be enough?
“Inventory may rise slightly, but I doubt it will hit the level needed to match demand,” says Maureen McDermut, a Realtor at Sotheby’s International-Montecito. “However, there are signs that more homeowners may sell this spring, especially retirees. If they see demand on the rise, they will become even more motivated to put their homes on the market, knowing that there could be a bidding war.”
What are some unique approaches homebuyers can take during this season?
In competitive real estate environments, as we’re likely to see this spring, it’s wise to get your ducks in a row before putting an offer on a home. Remember, sellers fear any complications that could cause the sale of their home to fall out of escrow.
Start by getting preapproved — not just prequalified — for a mortgage. Doing so will help you understand where your budget lies while strengthening your position as a serious buyer.
Shahwan advises serious buyers to get preapproved now if you want to be ready to purchase this spring. “Knowing you are preapproved at a higher-than-expected interest rate means, as rates come down, you will have more flexibility to compete should home prices go up.”
“If you want to have a winning offer in 2024, then the best advice I can give is to pay cash or qualify for a conventional mortgage. Sellers will want to close fast and get close to their full asking price, so it will be a tough market for those going with FHA or low down payment mortgages,” McDermut says.
The bottom line
Of course, there are other considerations to make if you’re contemplating buying a home this spring. For example, if you only plan to live in the home for a few years, purchasing could be risky because you may not have enough time to build up equity. Consequently, if home prices fall, you could be upside down on the home—owing more than its worth, when you want to sell.
Also, timing the market could be difficult, or even impossible. While paying attention to economic conditions is crucial, it’s more important to pay close attention to your finances when deciding if it’s a good time to buy now or wait. And, buying could make sense if you love the home and can comfortably afford the monthly payments, maintenance costs and property taxes. But if purchasing a home strains your budget, consider taking time to improve your finances or find a more affordable home.
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Sen. Thom Tillis says “the scope” of Helene damage in North Carolina “is more like Katrina”
As recovery missions and repairs continue in North Carolina more than a week after Hurricane Helene carved a path of devastation through the western part of the state, the state’s Republican Sen. Thom Tillis called for more resources to bolster the relief effort and likened the damage to Hurricane Katrina’s mark on Louisiana in 2005.
“This is unlike anything that we’ve seen in this state,” Tillis told CBS News’ Margaret Brennan on “Face the Nation with Margaret Brennan” on Sunday morning. “We need increased attention. We need to continue to increase the surge of federal resources.”
Hurricane Helene ripped through the Southeast U.S. after making landfall in Florida on Sept. 26 as a powerful Category 4 storm. Helene brought heavy rain and catastrophic flooding to communities across multiple states, including Georgia, South Carolina, Tennessee and Virginia, with North Carolina bearing the brunt of the destruction. Officials previously said hundreds of roads in western North Carolina were washed out and inaccessible after the storm, hampering rescue operations, and several highways were blocked by mudslides.
Tillis said Sunday that most roads in the region likely remained closed due to flooding and debris. Water, electricity and other essential services still have not been fully restored.
“The scope of this storm is more like Katrina,” he said. “It may look like a flood to the outside observer, but again, this is a landmass roughly the size of the state of Massachusetts, with damage distributed throughout. We have to get maximum resources on the ground immediately to finish rescue operations.”
Hurricane Katrina left more than 1,000 people dead after it slammed into Louisiana’s Gulf Coast in August 2005, flooding neighborhoods and destroying infrastructure in and around New Orleans as well as in parts of the surrounding region. It was the deadliest hurricane to hit the mainland U.S. in the last 50 years, and the costliest storm on record.
The death toll from Hurricane Helene is at least 229, CBS News has confirmed, with at least 116 of those deaths reported in North Carolina alone. Officials have said they expect the death toll to continue to rise as recovery efforts were ongoing, and a spokesperson for the police department in Asheville told CBS News Friday their officers were “actively working 75 cases of missing persons.”
On Saturday, the U.S. Department of Transportation released $100 million in emergency funds for North Carolina to rebuild the roads and bridges damaged by the hurricane.
“We are providing this initial round of funding so there’s no delay getting roads repaired and reopened, and re-establishing critical routes,” U.S. Transportation Secretary Pete Buttigieg said in a statement. “The Biden-Harris administration will be with North Carolina every step of the way, and today’s emergency funding to help get transportation networks back up and running safely will be followed by additional federal resources.”
President Biden previously announced that the federal government would cover “100%” of costs for debris removal and emergency protective measures in North Carolina for six months.
With North Carolina leaders working with a number of relief agencies to deal with the aftermath of the storm, Tillis urged federal officials to ramp up the resources being funneled into the state’s hardest-hit areas. The senator also addressed a surge in conspiracy theories and misinformation about the Biden Administration’s disaster response, which have been fueled by Republican political figures like former President Donald Trump.
Trump falsely claimed that Mr. Biden and Vice President Kamala Harris, his Democratic opponent in the November presidential election, were diverting funds from Federal Emergency Management Agency that would support the relief effort in North Carolina toward initiatives for immigrants. He also said baselessly that the administration and North Carolina Gov. Roy Cooper, a Democrat, were withholding funds because many communities that were hit hardest are predominantly Republican. Elon Musk has shared false claims about FEMA, too.
“Many of these observations are not even from people on the ground,” Tillis said of those claims. “I believe that we have to stay focused on rescue operations, recovery operations, clearing operations, and we don’t need any of these distractions on the ground. It’s at the expense of the hard-working first responders and people that are just trying to recover their lives.”
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