Another 24% predicted that the change in the real estate market would occur in 2024, while only 8% expect that to happen sometime in 2026 or sometime in the next five years. Metropolitan areas in the South and Midwest are the least likely to see price drops over the next year. It places the next peak in house prices around 2024, perhaps followed by a recession in 2026 and a downward trend from there. Homebuyers will need to arm themselves with a little more patience, as the housing market, in terms of inventory and share of purchases made by first-time buyers, is expected to return to pre-pandemic levels in 2024, according to a Zillow survey of price expectations for housing made by experts and economists in the real estate market.
Housing bubbles basically mean that prices grow and grow, becoming less and less affordable for the average buyer. This demographic group will continue to drive home price growth in neighborhoods that buy for the first time over the next two years. Inventory should return to a monthly average of 1.5 million units or more by 2024, according to the largest group (38%) of Zillow respondents. These potential millennial buyers will be comfortable with a fixed-rate mortgage rather than dealing with higher rents, even if the rate is only fixed for seven to ten years and can be adjusted after that.
Excessive risk-taking and unsafe practices by lenders, buyers, borrowers, builders and investors can drive home prices up too high. Eighteen percent of the experts surveyed didn't believe that the share of first-time buyers would exceed 45% until after 2030, even though millennials are the largest U. However, some “stagnant” markets will feel the effect of higher rates, since they have a smaller group of buyers. The biggest obstacle in the room that no one is going to is, in short, manipulative tactics by the Federal Reserve to price tenants (persuade them to buy because of a crazy rent) OR to price buyers of new homes.
This summer, markets like Austin and Las Vegas are experiencing a crisis between buyers and sellers. Home prices have skyrocketed across the country, but the number of first-time buyers remains high due to the enormous millennial generation. That's why time is so important, because you don't want to be a buyer in a strong seller's market or a seller in a strong buyer's market. Real estate experts expect a massive wave of first-time homebuyers over the next three years, with limited supply to meet demand.
However, most new home buyers need larger down payments to “win homes” these days, when there are multiple bidders.