Lima One Capital predicts stable housing prices and increased transaction volume in 2024

Lima One Capital unveiled its 2004 Housing Outlook today. The 26-page document predicts a more stable housing market than that of the previous 12 months.

“The 2023 Housing Market tested the patience of investors and homebuyers alike, as high interest rates and low inventory slowed the transaction rate significantly. But the market staved off the doom and gloom predictions of falling rents and declining home prices in most markets,” wrote Dameion Kennedy, Lima One’s in-house real estate research analyst. “The projections found in this outlook reflect a real estate market with slight improvements and more stability than last year.”

Lima One experts compiled numerous data sources analyzing topics from inflation to economic growth to home prices to property development to investment prospects to construction starts to create projections and analysis for what to expect in the housing market in 2024.

Insights in the Housing Outlook include:

Slow but steady economic growth: With inflation projected to fall below the 3.1% rate posted at the end of 2023 and unemployment projected to stay low at 4.4%, the overall economic environment for 2024 looks to be stable, providing a better atmosphere for homebuyers and real estate investors.

Home prices rising slowly: Why did home prices still rise in 2023 (up 2.2%) despite high interest rates? While demand has declined, so has supply, because many people are staying in their homes because they are locked into lower mortgage rates.  These factors will persist to some degree in 2024, leading to an average projected home price growth of 1.1%.

Lower interest rates: After rising throughout 2023 and topping out at more than 8%, conventional mortgage rates dropped sharply in December 2023 after the Fed communicated no rate hikes during a favorable 2024 forecast on rates and inflation. With conventional interest rates projected to fall in the low-to-mid 6% range over the course of the year (and perhaps lower at times), homebuyers and investors will find more purchasing power that should increase overall transaction volume.

The Housing Outlook also specifically calls out the strength of single-family rental, the impact of the addition of more than 600,000 multi-family units to the market, and projected increases in single-family housing starts.

Read the full report here:
https://promo.limaone.com/2024-housing-market-outlook-analysis

About Lima One Capital

Since its inception in 2011, Lima One Capital has funded over $9 billion in loans for real estate investors who are building, improving, and stabilizing neighborhoods across the nation. Lima One’s core loan products are New Construction loans for ground-up construction, in-fill, specs, and model homes; Fix and Flip, a 13-month bridge loan for investors who are buying, renovating, and selling properties; Rental property and portfolio loans for purchasing or refinancing residential rental properties; and Multifamily bridge lending for the purchase, rehab, or refinance of 5+ unit multifamily properties. For more information, visit limaone.com.