What’s in Store for 2024 and the Breckenridge Real Estate Market
Everyone wants to know What’s in Store for 2024 and the Breckenridge Real Estate Market, so we’re going to speculate and look at some data and opinions of what may come to be. And, of course, no one has a crystal ball, but we can look at long term trends, and apply what’s happening locally and make some guesstimates from there.
Prices Held and There was No Market Crash in 2023
While many thought fears of a recession and ongoing inflation (which is decreasing) would dramatically decrease home prices, that’s not exactly what happened. There were definitely markets that saw some big price reductions, but as we talked about in our previous market opinion, we believe that our Breckenridge and Colorado Real Estate market are a bit insulated from general and national trends which tend to be more representative of urban and high desnity areas.
The Breckenridge and Summit County real estate markets are typically second homes and are not a must have for families relocation for work, but are usually a very specific choice for lifestyle choices and personal reasons. Many want that vacation property near a world class ski resort, and that’s what many get when they purchase a home for sale in Breckenridge.
2024 Forecasted Trends from Zillow and Redfin
Let’s start with this article from Zillow titled, Zillow’s 2024 Housing Market Predictions, which then has a summary of Zillow predicts more homes for sale, improved affordability in 2024. And, while we normally don’t like to share these big trend type of articles, we know that these articles are what’s being repeated in the major media outlets and what you’ll hear the most about. So, let’s list some of their predictions and what they say might happen next year.
n 2024, Zillow economists predict home buyers will have more options and a bit more affordability breathing room — but only a bit — after the inventory crunch and mortgage rates rising to 20-year highs were this year’s headline news items.
According to the article, “Buying a home will remain expensive, keeping pressure on the rental market to cater to families that will be renting longer than previous generations typically were. Many of those who do buy will turn to homes that need some work, and do-it-yourself upgrades and repairs will keep new homeowners busy.“
- More homes will hit the market as homeowners accept that mortgage rates aren’t falling any time soon
- Home buying costs will level off, giving hopeful buyers a chance to catch up
- The new starter home will be a single-family rental
- More markets will follow New York City’s lead with rental demand surging near downtowns
- Traditional home buyers will compete with home flippers for homes that need a little TLC
- Artificial intelligence will enhance the home search experience
So, to understand what those bullet points mean, we can quickly go over a few items, but head on over to the article to get specific details on what the author’s thoughts are. but, we’re hearing that federal interest rates are to be dropped a few times next year, which doesn’t direclty translate over to mortgate rates, but overall trends show that there is a correlation and mortgage rates should decrease following the fed rates drop.
Prices shouldn’t raise dramatically, so buyers can anticipate and plan for home purchases with more stable pricing across the market. Some families will be renting longer while the perfect home and the perfect mortgatge rate (or, at least an acceptable one) and may be in the rental market longer than previous generations.
Artificial intelligence is being used in the real estate market more and more, and in a variety of ways. However, there’s no replacement for a human when it comes to generating personal opinion and details. We can easily identify AI generated content and I would hope that you do too. It will get better as these data sets grow and become more experienced, but we strive to personalize services that are unmatched and that no AI could replicate. In fact, I (Stacy) created the home images in this blog using one of several AI art generation products that exist now. So, a home you fall in love with online, may not be real at all.
Redfin Believes 2024 is the Year for Buyers
In this article from Redfin titled, Redfin Predicts 2024 Will Be the Year Homebuyers Catch a Break, With Home Prices Falling and New Listings Rising,
The article starts off with a summary that states the following:
“Listings will rise and prices and rates will fall. But high housing costs will remain a problem for young families, which will increase demand for large rentals and force President Biden to make affordability a cornerstone of his reelection bid.
We’re starting to see signs of a shift toward a buyer’s market as pandemic-driven inflation takes its last gasps, mortgage rates come down and more people list their homes for sale. We expect these trends to continue in the new year, ushering in a season of hope for aspiring homebuyers. “
- Prediction 1: Home prices will fall 1%
- Prediction 2: New listings will tick up
- Prediction 3: Home sales will increase and end the year up 5%
- Prediction 4: Mortgage rates will steadily decline–but remain above 6%
- Prediction 5: Change will come to the real estate industry
- Prediction 6: Renting will lose its stigma
- Prediction 7: Biden has a housing problem, which could hurt his re-election bid
And while those are the quick and dirty big trends that the author is sharing, there’s more. They share that “There’s more in store for 2024: Big price declines in coastal Florida, a wave of boomerang migration, local governments enact policies to improve housing affordability.”
Here’s a quick summary of the additional points, and as mentioned before, please click on the articles and read the details if you’re wondering about any further information that may be available regarding these claims. The article even ends with that “Our 2024 predictions are set against a backdrop of economic unpredictability. Our outlook could change due to uncertainty in other areas: financial market volatility, the course of the wars in Europe and the Middle East and the U.S. presidential election.“
- Prices will fall a lot in some metros and rise in others
- People will decide where to live based on in-office policies, climate risk and affordability concerns
- Local governments will focus on housing affordability
- More homeowners will use their home as an ATM, pulling out cash to cover credit card debt and home renovations
Colorado Association of Realtors Market Trends
We can help families and individuals looking for that perfect place in Colorado, and I’ll end with some more specific data for you to explore. This information is provided from the Colorado Association of Realtors and the article is titled, “Buyers and sellers exercising patience as they hibernate through the winter.”
A quick summary of the Summit County section includes the following, “In Summit, when comparing November 2023 to November 2022, the average sales price for single-family homes was nearing $2.3 million, which is 5.8% higher. Townhouse-condo property average sales prices were up 3.2% at $846,894. Year-to-date, the numbers are still down 1.8% for single-family homes and up 3% for townhouse-condos. Sellers received about 97.4% of their list price.“
How to Buy a Home for Sale in Breckenridge
Ok, if you’ve read this far, then you must be serious about learning about the potential to owning a home in the Breckenridge area. That’s where we come in. Please contact us to discuss these articles, and anything else that might be on your mind when it comes to the Breckenridge real estate market. We are here to help owners sell their home and move on to their next chapter, and we’re always ready to talk all day about how great this area is. Please fill out the form below and let’s get started on dreaming on what could be. Thanks for reading!