Rick Sharga, a top expert in understanding how economic changes affect real estate, recently shared his thoughts on the 2024 market at Side x Side. Here's a breakdown of his insights and what they mean for you:
U.S. Economy:
No Immediate Recession: While many experts previously thought a recession would hit in 2023, now only 60% predict one in 2024. However, Rick and others believe a mild recession is still possible due to historical patterns.
Strong GDP Growth: The economy has been doing well, with GDP growing more than expected in Q3 and Q4 of last year.
Low Unemployment: Unemployment is very low, leading to higher wages and lots of job opportunities.
Consumer Behavior:
Spending Holds Steady: People are still spending money, despite concerns about things like COVID-19 and supply chain issues. But if people's confidence doesn't improve, spending might slow down.
Housing Market:
Resilience During a Recession: Rick thinks the housing market can handle a mild recession. As long as unemployment stays below 6%, it should be okay.
Lower Mortgage Rates: Mortgage rates are expected to drop this year, which could make more people want to buy homes.
Low Inventory, Higher Prices: There aren't enough homes for sale, which is driving prices up.
Things to Watch: Keep an eye on new construction, investor activity, and foreclosures. These areas might offer opportunities in the market.
Conclusion: Despite the chance of a mild recession, the housing market looks stable. Lower mortgage rates could boost demand, but low inventory might keep prices high. Keep an eye on trends in construction, investor behavior, and foreclosures to find potential opportunities in 2024.