It’s hard to believe, but 2024 is more than halfway done. While this year has been full of both opportunities and challenges, let’s rewind a bit and see what predictions came true, which were wrong and which ones could still happen as we head into what we hope is a busy fall season.
Multiple rate cuts were coming. (Not true yet.) Expert forecasts foreshadowed a year where the Federal Reserve would repetitively slash rates, potentially stirring a hive of activity within the housing sector. It was even predicted mortgage rates would tumble to as low as 4.25% by summer’s end. Instead, mortgage rates have maintained a position around the 7% mark, and our expected flurry of housing activity is yet to materialize. But we’re still hopeful this will change soon. Mortgage rates are already falling, and the Federal Reserve is facing more pressure to finally do something regarding rates next month.
Housing inventory levels would remain at historic lows. (False) Inventory wasn’t expected to pick up until mortgage rates went down. However, there’s been a noticeable shift since spring. The housing market has seen a steady rise in the number of homes listed for sale across the nation. The latest data indicates an inventory surge of almost 25% nationwide compared to last year. The growth in housing stock is likely to continue, especially if mortgage rates continue to drop further.
Changes to the commission structure were years from happening. ( Very false) Last October, the Sitzer/Burnett decision left most observers speculating on the protracted court battles ahead. However, to the surprise of many, NAR opted for a swift settlement in March, and the changes officially went into effect this month. While all of us in real estate are figuring out what exactly happens now, there wasn’t the legal fight most of us were expecting. Let us know if we can help you navigate what happens next as a buyer or listing agent.
Cybercriminals will continue to plague our transactions. (Very true.) Unfortunately, this prediction hit the bullseye like it does every year. Both traditional wire fraud attempts and seller impersonation scams remain significant issues for everyone in the real estate sector. As sales activity increases, so will these fraudsters’ activities. It’s important we all stay vigilant, no matter what happens or how busy we get.
As with every year, the reality of 2024 has been a mixed bag of surprises and predictable outcomes. One constant that remains is Founders Title’s commitment and readiness to navigate these challenges with our customers and partners. Reach out to us anytime. We’re ready to tackle anything with you this season!