ON THE MOVE! December
Hello Friends
I’m back to share more insights on interest rates, housing projections and our local market. Of course, I’m not a financial advisor or lending professional, so as always consult with the appropriate professionals.
Where’s that crystal ball? There does seem to be agreement that in 2024 the Fed will begin to cut rates. The question is when and how aggressively.
USA Today recently wrote that future markets predict four to five quarter point rate cuts in 2024. However, others anticipate that only two will happen. When it will happen is also in debate. While some believe early spring, a recent CNBC Survey indicates mid-year. Prime Lending also forecasted that they believe it will be later in 2024 unless the Fed thinks the economy has drastically weakened and it needs to cut rates to stimulate the economy. See full article link(s) below. . https://www.usatoday.com/story/money/2023/12/12/fed-keep-interest-rates-unchanged/71875892007/ https://www.cnbc.com/2023/12/12/fed-to-start-cutting-rates-midyear-in-2024-with-high-chance-of-soft-landing-cnbc-fed-survey-finds.html
So, how does this translate to you and what is new in your neck of the woods? Take a look at the year-over-year comparison specifically for the Branson market from our Southwest Missouri Board of Realtors (SOMO) multi-list system. There is a decrease in the number of listings for residential and condos. Properties that sold resulted in an increase of the average sale price from 2022 to 2023 from 2% to 3%.
Again, once Buyers see a decrease in interest rates, it’s projected that the pent-up demand will continue to increase the purchase price. Take a look below at the article from REALTOR® Magazine by Jessica Lautz, Deputy Chief Economist at the National Association of REALTORS®. She anticipates that Buyers will start trickling back in due to a more favorable market, but will face other hurdles such as increased competition in a limited market, therefore finding a home to buy. We may again see multiple offer situations. For the full article, see the link below. https://www.nar.realtor/magazine/real-estate-news/mortgage-rates-are-almost-back-to-7-percent
As this market relates to the vacation rental market, see the article from Future Markets Insights.
https://www.futuremarketinsights.com/reports/short-term-vacation-rental-market. The vacation rental market is expected to expand through 2034 substantially increasing projections. That means now is your time to buy rental property in Branson. Ask your Branson USA Realty, LLC Agent for more details. We can help you buy a property or sell a property in the Table Rock Lake area.
So, in a nutshell; most anticipate an improved real estate market in 2024. At what pace, only time will tell. The residential market may be more be challenging as Buyers navigate affordability and available inventory. This may be a great time for homeowners to sell as Buyers trickle back into the market. Returns in the vacation rental market, in general, remains strong with a positive future. This is a great time to enter this year’s market or pick-up additional properties to broaden your portfolio. Buy a condo approved for nightly rental in or around Branson, Missouri and Table Rock Lake, you will love it.
Debbie