CHAD VO

The housing market has seen a mix of positive and concerning indicators lately, signaling potential shifts in the coming year. Factors like constrained supply and high borrowing costs have slowed the market in recent times. However, recent announcements from the Federal Housing Agency (FHA) have injected some optimism. They’ve declared an increase in conforming loan limits for 2024. This move, coupled with a fifth consecutive week of declining interest rates, could be the stimulus needed to revive the housing market from its sluggish state.

The real estate landscape has been hampered by limited housing options and steep borrowing expenses throughout the year. Yet, with the upcoming rise in loan limits and the ongoing decline in mortgage rates, there’s hope for a turnaround, potentially in the first quarter of the upcoming year. An increase in consumer confidence last month is also a positive sign, reflecting overall stability in the economy, even as experts anticipate a mild recession on the horizon as 2024 approaches.

Let’s delve into the specifics of these recent developments that are shaping the housing market’s trajectory.

On our site, we covered a few articles to keep our audience up to date with what institutional investors or Wall Street Landlords are doing in different markets in order to gain different perspectives when it comes down to real estate investing. As a matter of fact, only a few months ago, many Wall Street landlords were acquiring properties across multiple rental markets extremely aggressively (comparing to retail market). However, as of now, things have changed.

The phenomenon of institutional homebuyers rapidly offloading properties has sparked interest and intrigue, particularly in certain regional pockets across the United States. While the general trend among major institutional landlords hasn’t resulted in an overflow of housing inventory, exceptions like VineBrook Homes have captured attention with their brisk selling activities.