Why a housing market 'thaw' never came in 2024
Published On Dec 21, 2024, 4:43 PM
The housing market in 2024 has remained stagnant, failing to show the expected rebound due to persistent high mortgage rates, low supply, and record home prices. Despite hopes for a thaw in market activity, the average 30-year fixed mortgage rate has consistently hovered around 6.6% to 6.7%, discouraging buyer engagement. As a result, the market is on track for the worst sales figures since 1995 for two consecutive years. Analysts believe that significant recovery may not occur until 2025 as the market adjusts to higher interest rates, despite a slight uptick in existing home sales in late 2024.
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Given the ongoing stagnation in the housing market and the persistent high mortgage rates, investment in homebuilding stocks or REITs may face challenges in the short term. However, if the market begins to recover in 2025, these investments might offer opportunities for growth. Investors should focus on companies with strong balance sheets and exposure to the remodeling sector, which may see demand increase despite overall housing sales remaining low.
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