January 2024 Greater Des Moines Housing Market Update

by Keith Soldwisch

Here's what you need to know about January's housing market:

Mortgage rates should continue to go down
As rates drop, home sales will increase
Home price growth will moderate

A large majority of buyers in the current market are waiting for the best opportunity to lock-in the best mortgage rate. This is understandable because it is known that the Federal Reserve is going to drop mortgage rates three times in 2024.

If you read one of our latest blog posts, we included a statement from Chief Economist & Vice President of NAR Research, Jessica Lautz, stating that mortgage rates went down 0.06% at the end of last year on December 28, 2023. It is predicted that rates will drop again in late spring early summer.

Since mortgage rates are predicted to go down, that means that home prices will go up. The Mortgage Bankers Association (MBA) forecasts that homes will appreciate by 4.1% and on the opposite side of the spectrum, Realtor.com forecasts that home will depreciate by 1.7%. So if you are a buyer, you may pay more for your home, however, you can lock-in a lower interest rate allowing you to pay less money each month over the length of your loan.

Home Price Expectations Survey (HPES) projects that if you purchase a $400K home in January 2024, over the next five years by January 2029, you could increase your home equity by $72,405. Even if you purchase a home in the $200K-$350K range, you should expect to see a good amount of equity built up.

Recap:

It's a GREAT time to buy
Keep saving your money to make a nice down payment
If you buy now, you are likely to grow your household wealth in a short period of time

At Zealty Home Advisors, we are here to serve you and provide you with the best service to receive the best results in your home buying or selling experience. If you have any questions at all, don't hesitate to reach out to us and give us a call at (515) 329-4667.

Also if you’re interested in getting these housing market updates directly to your email inbox, sign up for our newsletter below by adding your name and email address.

Keith Soldwisch

Managing Broker/Owner | License ID: B59816000

+1(515) 414-0462

January 2024 Greater Des Moines Housing Market Update

by Keith Soldwisch

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