Is 2024 a good year to buy a house? Should you buy now or wait until house prices drop? Read on for all the factors to consider when deciding whether you should purchase a house in Virginia Beach in 2024.
Even though Virginia Beach is a great area to invest in, the 2024 housing market will continue to be stressful for many looking to purchase a house. Many potential buyers have been wondering, “Should I even buy a house right now?”
If you’re doubtful about finding house-buying success in today's market, you’re not alone. In June 2024, a survey conducted by Fannie Mae found that homebuying sentiment across the country is at an all-time low. Belief that it's a good time to sell is declining, and only 14% of those surveyed think it's a good time to buy. (That's a 6% drop from last month.)
Remember: real estate factors are hyper-local. If you want or need to buy a house in Hampton Roads in 2024, don’t let the competitive market fill you with dread. Read on to prepare yourself for success in today’s housing market and avoid buyer’s remorse.
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Is it a good time to buy a house in Virginia Beach?
Let's be clear: 2024 will be another challenging year for many homebuyers. The surge in demand in recent years has resulted in a historically low housing inventory across Hampton Roads. Purchasing a house this year, especially in areas like Virginia Beach, will require patience and strategic planning.
Answering the question “is now a good time to buy a house” on a national scale is a bit complicated. The lower affordability of the market right now dissuades buyers, softening demand. Yet we don’t see that boosting inventory like it normally might.
However, our experts believe 2024 is a good time to buy a house if you're able to do so in areas like Virginia Beach and greater Hampton Roads. Let’s take a look at why.
Is 2024 still a seller’s market?
Sellers do still have the advantage in 2024, but not like a few years ago. This year, demand is at its weakest since 2015. Which would normally tip the scales in favor of the buyer – but median house prices are still on the rise.
Why is the cost of homes still going up? Supply is still overwhelmingly low, both in resale homes and new construction. In fact, the US housing market is estimated to be undersupplied by over 2 million units.
If you’re hesitant about selling your home right now, you can still get top dollar in 2024 with the right strategy. We’re seeing competitive bidding situations and higher prices for homes in the right condition and location.
No matter where you live, don’t go it alone. Get flat-fee expert real estate consultation from anywhere in the U.S.
When will house prices go down?
Again, it’s complicated.
The real value of homes in Southside Hampton Roads is down 1% from May 2022 (looking at May 2024’s numbers). While house prices have increased nominally over the past couple of years, adjusting for inflation shows that the surge in real value has cooled off.
On the other hand, Hampton Roads doesn’t physically have much room to add to its housing market’s inventory through new construction. This constrains the available supply, putting inflationary pressure on home prices.
So, should I buy a house now?
While navigating the housing market remains challenging for both buyers and sellers, buying a house now could be a good investment choice if you are in the financial position to do so. Virginia Beach and Hampton Roads are likely to see house prices continuing to increase for a while – when mortgage rates drop, demand and prices are both likely to go up.
Things to know before buying a house in 2024
Though the market will remain competitive, there are many people for whom buying a house this year will remain the best decision. However, homebuyers in Virginia Beach and across the country should be prepared for:
Increased Closing Costs
Closing costs, specifically mortgage closing costs, have been on the rise for years. Lenders charge different fees to home buyers at closing. From 2021 to 2023, the median total loan costs for a house mortgage increased by 36%.
Taxes & insurance, which are typically pre-paid for a certain amount of time at closing, have also increased significantly over the past few years. Be prepared to bring more cash than you might expect on top of your down payment to closing.
Fast Market Times
New listings are, on average, still going under contract within seven days of hitting the market in Hampton Roads. When a listing catches your eye, be prepared to view it as soon as possible. Have your finances in order so you can make an offer quickly. (And sign up to receive timely alerts on new MLS listings so you don’t miss out!)
Multiple Offer Situations
Don’t be surprised if you find yourself in a bidding war situation in 2024. The dynamics of the current market mean competition can still be fierce for properties that are priced well for their condition and location.
Get the best tips on how to win a house that has multiple offers on it here!
Compromising
With supply still at a minimum, there simply aren’t that many options available to homebuyers right now (especially single-family homes). With less inventory, you may need to compromise on something—price, house size, location, features. Make a very clear list of negotiables vs. non-negotiables before you start looking.
Cash is King
Cash will be necessary to secure a house in 2024. Sellers will often opt for a cash offer over those with financing to avoid risking a loan complicating the transaction. Be prepared to pay more out of pocket to cover an appraisal gap or increase your down payment to entice the seller to accept your offer.
To recap, if you feel you should buy a house in 2024, stay on top of new listings with MLS alerts, keep your expectations and demands realistic, and understand that being a buyer in a seller’s market may be hard work. And working with a top Virginia Beach real estate agent will truly help.
How can I buy a house in 2024 and avoid buyer’s remorse?
Buying a house isn’t something that should fill you with regret. At CGP, we’re all about homebuyers investing with confidence. So here are some tips we give our clients to prevent buyer’s remorse:
Be in the right headspace
Feeling rushed to buy anything is not fun, especially if it’s one of the biggest purchases of your life. However, you’ll have to act quickly. Understand that it may be difficult to secure your dream property. With a professional you can trust, ask all of your questions about the process ahead of time, and be prepared to act when the perfect house pops up.
Work with a local expert
Working with a real estate professional who truly knows Virginia Beach (or whatever area you are moving to) is essential this year. They may have access to off-market deals. They know which houses are worth a higher price based on location and condition. They know which ones are not worth pursuing.
Beware: Not all agents are created equally, or are equally concerned about potential buyer remorse. Work with someone who has your best interests in mind.
Make your wish list with current inventory in mind
To avoid regretting your house purchase, make sure you have a realistic idea of what houses are available when making your wish list. There simply may not be any 5-bedroom houses with a pool available in your price range in your ideal Virginia Beach school district right now.
Draw red lines
Buying a house is an emotional process. Hard-and-fast guidelines for your search will help you avoid buyer’s remorse in two ways: you won’t waste time and risk temptation looking at houses you would regret purchasing, and you won’t fill your brain with luxurious homes you really can’t afford or wouldn’t suit you in the end.
So many factors may seem negotiable in a fast market, but certain compromises often lead to regret. Here are some examples of “red lines” you can draw for yourself when determining if you should buy a house:
What is your absolute maximum monthly mortgage payment?
How much cash are you able to pay out of pocket?
Are there features you absolutely must have? (e.g. a second bathroom)
Do you need to be in a specific school district?
Can you and your family really live through a kitchen renovation?
Do you really want to commute 45+ minutes each day through tunnel traffic?
Patience is key
If your circumstances allow, have patience. It’s better to lose out on five properties and to get the sixth at a price and location that makes sense to you than to wake up five years from now regretting a bad financial decision you felt pressured into. Maybe your situation is more time-sensitive, and that’s ok. Pay extra attention to these steps to make the process work for you.
Don't skip the home inspection
As tempting as it may be to sweeten your offer by skipping the home inspection, it can be a recipe for disaster. There are better ways to entice the seller without foregoing your due diligence.
Have your financing in order
Make sure you have a clear idea of what mortgage rates you can get and what type of financing will be available to you. Try to put 20% down on a house to avoid having to pay private mortgage insurance (PMI). Don’t forget to budget for home insurance and closing costs. In the end, you don’t want to be suffering from payments you can’t afford.
Use a network of trusted contractors
Whether you are getting a property inspected or updating a sewage line before moving in, making sure you have access to some expert-recommended contractors is crucial. If you work with real estate experts like CGP, they will advise you on the best electricians, carpenters, plumbers, and more.
Know when you can back out
Just because a seller accepts your offer doesn’t mean you can’t still terminate a contract if a major issue comes up. Talk to your trusted real estate professional to make sure you understand how the entire process works so you don’t get stuck with regrets.
Unsubscribe from new listings
You’ll want to be taking advantage of customized local MLS alerts while you’re searching, but once you’re closing on a house, make sure to unsubscribe. Staring at those carefully crafted photos of new listings on the market can easily cause “the grass is always greener” syndrome.
The Bottom Line
When debating if you should buy a house right now, our experts think it is a good time to buy a house in places like Virginia Beach that are likely to have continued inventory struggles. If the last three years have shown us anything, it’s that low inventory will keep pushing house prices higher for the foreseeable future.
If you’re outside of Virginia and wondering, “Should I buy a house in 2024 or should I wait?”— You can still get expert guidance affordably. Contact our flat-fee real estate consultant team to strategize from anywhere in the United States.
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