In 2023-2024, the residential real estate market may experience a downturn due to rising interest rates, restrictions on home purchases by authorities, and buyer fatigue from high prices over the past several years. Here are some potential trends to watch:
Decreased demand: Buyers may become increasingly reluctant to pay high real estate prices, which could lead to decreased demand. This could be exacerbated by local government restrictions on property purchases to curb speculation.
Rising interest rates: If interest rates increase, it could deter some potential buyers from purchasing a home, as the cost of financing would be higher. Mortgage loans could become less affordable for some households.
Price declines: If demand decreases and supply remains stable, prices may decline. Sellers could be forced to lower their prices to attract buyers.
Growth in rental investments: Investors may turn to rental investments due to low interest rates and increasing demand for rental housing. This could lead to an increase in the supply of rental housing on the market.
Increase in home construction: If demand for homes decreases, builders may be less incentivized to build new homes. However, if demand for rental housing remains strong, builders may turn to constructing homes for rent rather than for sale.
In summary, the residential real estate market may experience a downturn in 2023-2024, with decreased demand, rising interest rates, and price declines. Rental investments may experience growth, as well as the construction of homes for rent.
