2024 is still weeks away, but we’re already getting predictions of what may impact next year’s real estate market. REALTOR® Magazine recently published a list of what it calls “hot button issues for the industry.” And while it may seem like Pittsburgh is insulated from some of these key issues, it’s helpful to understand the many variables that can influence the housing market.
The information in the article was released by the Counselors of Real Estate, which puts out an annual list “roadblocks for the real estate market.” It analyses everything from global unrest to infrastructure in its assessments. Next year’s market is also likely to be influenced by the prevalence of hybrid work, which is keeping more people comfortably working at home—while making employers think hard about incentives to get them back into the office.
Global issues including political unrest have profound impacts on interest rates and growth—while a housing shortage (which we have seen here in western Pennsylvania) can make it hard for prospective homebuyers to find a new place to live. The article attributes this problem to underbuilding over the years that’s led to fewer homes and higher prices for those that are available. It also cites big data as potentially adding to the problem—because investors can see information in real time and make projections further out, they’re being more calculated in their real estate moves.
Additional challenges are presented by the labor shortage and movement away from big cities. When there aren’t people available to build homes—and when the existing homes are located in regions where people are simply priced out from buying them—the market suffers. As home prices and insurance rates increase in coastal and Western states, people are relocating to avoid these upticks. New hotspots for relocation, according to the article, include cities in Alabama, Arizona, Wisconsin, and South Carolina.
To get a fuller picture of the external forces that impact the market, we encourage you to read the full article. And if you’re interested in buying or selling—rely on our knowledge, experience, and guidance to help your real estate experience to be a success no matter where or when you’re planning to buy or sell. Contact us to learn more.