LEXINGTON, Ky. (LEX 18) — With interest rates on mortgages expected to drop in 2024, realtors, homebuyers, and sellers feel optimistic about the new year's housing market.
While high-interest rates and climbing prices have kept many buyers out of the market in recent years, some believe the tide could be turning.
A monthly report from Bluegrass Realtors revealed November marked the strongest year-over-year comparison for home sales in 2023, with just an 8% decrease from 2022.
This comes as earlier this month, Freddie Mac reported the average interest rate on a 30-year mortgage dropped below 7% for the first time since August.
Local real estate agent Cynthia Trgo of Bluegrass Home Group explained that she expects those interest rates to continue to drop in 2024.
"We do expect three to five different rate drops this year," she said. "So much positivity, a lot of stability, a great time to be involved with any kind of real estate."
Trgo explained that Kentucky's housing market has remained relatively stable for the year despite uncertainty among buyers and sellers.
She added that while interest rates are expected to fall, prices likely will not in the new year.
"This is not a housing market where we're going to see a big crash or see a big dip in home values, because supply and demand is keeping us very stable," she said.
She added this could benefit buyers, as the value of a home will likely increase after purchasing.
The National Association of Realtors predicts the number of sales of existing homes will increase by 13.5% in 2024, with median home prices rising by just 0.9%.
Trgo advises potential buyers to get into the market sooner rather than later.
"The longer you wait to buy, the more a home is going to be worth, so you're going to end up paying more for a home," she said.
