The cozy mountain community of Alpine has been a popular destination for decades. Whether it’s world-class skiing at the resorts or the numerous rugged hiking and biking trails enjoyed in the warmer months, Alpine has proven itself to be a premier destination for outdoor enthusiasts. Its popularity has been cause for growth in the local real estate market, making it a hotbed for investing. And while the national market has seen record-breaking median home prices over the last several years, in-demand areas like Alpine have certainly led the pack. But will this surge in demand in Alpine continue? Market forecasters share their expert opinions on the national market and how it will impact Alpine throughout the next calendar year.
The national real estate market forecast for 2024
Median home prices soared to a record high in June 2022, further prompting the Federal Reserve to make interest rate hikes. After 18 months of base rate increases, median home prices began to noticeably fall, dropping year-over-year for the first time since the pre-pandemic days this past April.
But the rate increases, while effective at reducing growing inflation, had a minimal effect on the real estate market. While home closings dropped, median home prices only decreased for a short period. Experts in October 2023 are projecting the record set in 2022 will soon be surpassed. The supply of available homes is still low, while the demand remains higher than ever. This imbalance is projected to continue, even if rates continue to increase again in 2023, as expected.
However, there may be some relief for buyers next year, as recent data suggests that interest rates will drop beginning in February 2024. This prediction is based on the assumption that inflation will be well under control, prompting the Federal Reserve to continue reductions until they meet their target rates of 2%.
But how do these projections impact the Alpine, UT, real estate market?
How the national numbers will reflect on Alpine’s real estate market in 2024
The Alpine, UT, real estate market has strongly favored sellers for the last several years. The high demand for homes in this picturesque mountain community is expected to remain high, even if interest rates continue to rise over the remainder of 2023. And going into 2024, the demand is projected to rise even higher.
If market forecasters are correct in their predictions that interest rates will begin to drop in 2024, it will mean another jump in demand for markets like Alpine. With an already short supply of homes in this community, expect median home prices to continue to increase throughout 2024.
What the 2024 market predictions mean for buyers in Alpine, UT
As a prospective buyer, higher interest rates and record median home prices might give you pause before you purchase. But hesitation might cost you in the long run. If you buy today, you’ll, of course, be paying a higher interest rate than you would have 18 months ago. You might be considering holding off until mid-2025, as rates are predicted to drop substantially. But considering the direction of median home prices, you should take a few things into consideration.
While buying a home in Alpine means a higher rate today, it almost certainly means getting a home for less than what the market predicts you would in 2024. A jump in median home prices next year would mean near-instant equity. As for paying more basis points on a mortgage, that’s a valid point. However, if forecasters are wrong and rates don’t drop, you’re still getting a home at a competitive rate but for far less than you might pay at closing if you wait until 2024. And if forecasters are correct about rates dropping, you’ll still get a home at today’s median home price and can refinance for a lower mortgage rate when rates drop.
If you are considering selling real estate in Alpine, you should know the following
As a seller, obtaining the expert guidance of a real estate agent is more critical now than ever. You might think that a strong seller’s market would mean working with an agent isn’t a necessity. But market data shows this assumption can cost you dearly at closing, as sellers who team with a real estate agent make far more at closing than those who go the “for sale by owner” route. In fact, the difference in closing prices between those represented by an agent and those by the seller alone is double digits apart. This is far more than the commissions earned by the agents and brokers combined.
As a seller, you’ll get the most out of the Alpine, UT, real estate market with an agent. An experienced agent will use their marketing skills and connections to lead the most qualified buyers to your listing. This is an invaluable service, as it will save you a great amount of time and can even result in your home being sold for a higher price, ensuring you get the most out of your transaction.
Buying or selling in Alpine? Reach out to Alicia Keller
The decision to buy or sell real estate in any market should be carefully considered. If you are looking to purchase property or sell existing property in Alpine, you will greatly benefit from the expertise of a qualified real estate agent such as Alicia Keller. With years of experience helping buyers and sellers alike navigate the nuances of Alpine’s competitive market and over 50 million dollars in sales in 2022 alone, Alicia is a worthwhile partner to have at your side. Having her skills at the table will help you better negotiate for a fair price as a buyer, while her marketing ability will lead qualified buyers to your listing as a seller. If you are ready to take the plunge into the Alpine, UT, real estate market, contact Alicia for a consultation today.