2024 Real Estate Forecast: Is it the Year of the “Seller Sweet Spot”?

As the 2024 spring selling season approaches, homeowners across the country are gearing up for what could be the year of the “seller sweet spot.” According to a recent survey conducted by Opendoor, there has been a significant 18% increase in the number of homeowners planning to sell their homes in the next 12 months. This surge in seller sentiment is believed to be driven by a combination of eagerness to re-enter the market and pent-up demand.

Traditionally, the real estate industry marks the Super Bowl as the official kickoff to the selling season, but data shows that sellers are more active in the months of April to June. This year, sellers seem to be coming off the sidelines even earlier, with a 7% increase in sellers planning to sell in the first quarter compared to the previous year.

Several factors are contributing to this potential seller’s sweet spot in 2024, including the stabilization and potential decrease in interest rates. The Federal Reserve has hinted at a possible rate cut in the coming year, and mortgage rates have already started to decline. Additionally, new home builder incentives are motivating homeowners to purchase new-construction homes and sell their current ones, thereby increasing availability in the market.

Rental rates are also playing a role in shifting renters into potential buyers, as affordability remains a challenge for many renters. With the “Silver Tsunami” of older adults looking to downsize or move closer to family, there is a growing pool of potential sellers entering the market.

As the 2024 selling season unfolds, the real estate industry is poised for significant growth and change. The convergence of lower mortgage rates, increased new-build incentives, a shift in rental rates, and the impact of the Silver Tsunami could create a perfect storm for sellers looking to make a move.

Overall, 2024 has the potential to be a groundbreaking year in the real estate market, with sellers poised to benefit from a variety of favorable conditions. The next few months will reveal whether the stars align for a truly remarkable selling season.

Nick Boniakowski, head of agent partnerships at Opendoor, emphasizes the importance of staying informed and prepared for the shifts in the market. As a veteran in the real estate industry, he offers valuable insights and guidance to agents navigating the changing landscape.

With so many factors at play, homeowners and agents alike are keeping a close eye on the market as they await the arrival of what could be the most opportune selling season in recent memory.