2024 Predictions

It’s an election year so the current Administration will make every effort to help the economy. The Federal Reserve will not raise interest rates and may even reduce them by 1% before Election Day. This will, in turn, reduce mortgage rates helping home buyers qualify for a more expensive home and all homes will be more expensive. Look for home prices to increase in 2024 by anywhere from 5% to possibly 10%. There is nothing short of an unexpected event like a war somewhere around the globe, to negatively affect the housing market. In fact, we have a shortage of new homes and a low inventory of resale homes that will further drive the market upward.

All those luxury apartment projects you’ve seen under construction around town will begin coming online in 2024. In Scottsdale alone, the estimate is five to ten thousand new luxury apartments will hit the market this coming year. Competition will be fierce, and you may see free rent periods offered with longer-term leases. If you are thinking of giving big building living a try, you might wait until summer when demand is low and competition peaks.

We will continue to see older homes bulldozed from larger lots. This trend has worked its way steadily North. The last of the large lots end at Thunderbird and the Cactus Corridor will be busy with new two to five million-dollar custom homes. Some of these will be owner-occupied and some will be available for sale.

Retail and commercial space will continue to evolve. The Internet has changed everything, but many businesses will still need a physical location. The challenge will be for investors to predict what will work. I have a client who owns gas stations and because of electric cars, he is trying to move his money to residential rentals. The reasoning is simple – people will always need a roof over their head and this is America where the dream of home ownership burns bright.

Have a glorious New Year. My wish for you is that all your wishes come true.

-Joseph Callaway