submitted by Mike O’Neil, Berkshire Hathaway Home Services Fox & Roach Realtors
As we enter 2024, I’m frequently asked about this year and the future of real estate in Bucks County. Market conditions have actually changed very little.
Limited supply of homes for sale and huge demand for housing have continued to push prices even higher. In spite of higher interest rates, which hover around 7%, the affect on sales is minimal.
Although industry experts feel rates may decrease, any drop in rates will be minimal. The days of the 3% mortgage are long gone.
This makes it very difficult for first time buyers needing financing to enter the market. Statistics from the National Association of Realtors estimate that 35-40% of sales are cash.
Many buyers are investors, buying and renting looking at future appreciation. Many are out of state taking equity from expensive homes. Many are using retirement funds to create cash and using family money.
Home prices increased last year roughly 5%, and certainly higher in this area. With lack of inventory, we expect the same this year.
If you are a seller, it’s a great time to cash out, and desirable homes are still experiencing bidding wars. If you are a buyer, just get into the real estate market.
You may have to adjust your thoughts about price and area. For most people, saving won’t keep up with future appreciation. Find an agent who is experienced, knows construction, and is a good negotiator.
If you have any questions regarding buying or selling, I’d be happy to discuss those issues and provide a free home evaluation, no obligation. 215-962-8511 (cell) or 215-504-7500 (office).