Many Denver area real estate agents anticipate interest rates will continue to drive the housing market in 2024. But after a year when high rates stymied sales, they hope interest rates start dropping.

Lower interest rates may convince more people to put their houses up for sale and may encourage some potential buyers to restart their search.

Most industry professionals agree that a little decrease in rates will bring buyers off the sidelines. However, they caution that the days of 3% mortgage rates likely won’t be seen again any time soon.

Although it’s a new year, many of the same issues will continue to plague home buyers in 2024, said Bret Weinstein with Guide Real Estate

January brings a new set of buyers, so sellers will see multiple offers, and I expect to see the days on the market drop. Although, with limited inventory, prices likely won’t budge.

And when rates drop, more buyers will jump in, potentially sparking new bidding wars and pushing prices higher. Some expect 2024 will be challenging for buyers as the climate is primed to take off and become competitive.

Many ask if new construction would help, and it would, but that alone won’t meet pent-up housing demand. Some insiders think Denver is likely going to continue to experience a housing shortage for at least three or four more years, and that limited inventory will likely keep the Denver area a seller’s market again in 2024.

If you’re thinking of becoming a homeowner in the new year, there are opportunities to be found. That is, if you know where to look. Reach out to one of the experienced professionals at Metrowest today and let’s discuss your options!