Let’s take a look at what the housing market has done over the past year, along with some predictions for 2024. We’ll look at stats for New York State real estate, plus national trends, and then we’ll dive into Lake George specifically.
2023 Highlights:
- Across NYS, real estate sales were down in 2023, compared to 2022 and 2021
- The number of new property listings in NYS was down 22.4% in the second quarter of 2023 from 2022
- Home prices increased in almost half of NYS counties during the second quarter of 2023 from 2022
- Nationally, mortgage interest rates were the highest they’ve been in 23 years in October, but recently went down in November to 7.35%
Looking at New York State in as a whole, vacation homes and investment properties continue to be popular in family-friendly areas and those that rely on tourism, like Lake George. The fact that sales have been down is in part due to the high mortgage and home rates, and in part to how strong the market had been the past two years.
While some real estate professionals believe it’s too soon to see if the recent decrease in mortgage rates is a seasonal fluctuation, some believe it’s a solid indication of 2024 trends to come.
2024 Predictions:
- Mortgage rates are expected to decrease
- Home sellers are expected to increase
- Housing inventory is expected to increase
- New home construction sales are expected to increase
- Home prices are expected to decrease in NYS
Some experts predict mortgage rates will land at around 6% by the end of 2024.
The number of home sellers is expected to increase, partially because baby boomers are looking to downsize.
The housing inventory is expected to rise, as sellers who had put off selling in 2022 or 2023 – because they didn’t want to let go of their low mortgage rate – may make the move in 2024.
New home construction has been increasing the past few months, and is expected to continue to do so.
The 2024 National Housing Forecast predicts home prices will go down as the mortgage rates ease. Moreover, Forbes maintains that NYS specifically will see home prices go down in 2024.
Don’t forget that 2024 is also an election year, and that can have at least a short-term effect on the housing market.
A Look at Lake George
According to the Albany Business Review as of November, Lake George was the second largest lake market in New York State, with a total real estate market estimated at $134.8 million. About 15% of Lake George homes listed are at over $1 million.
According to Adirondack Explorer, the average sale of a home in the Adirondacks was $284,000 as of June, 2023, which was up from $178,000 in 2018.
We continue to see a strong desire for homes in the Lake George and southern Adirondack region, although we have not been immune to the rising home prices.
Just south of the Adirondack region Saratoga Springs saw a 47.1% increase in home sale prices as of the second quarter of 2023, according to Forbes.
Ready to Talk Real Estate?
I have years of experience buying and selling homes in the Lake George and Capital Regions, and have navigated through all the ups and downs of the local market. If you’re looking to buy or sell in the area, get in touch today.
Sources:
- Albany Business Review: Lake George real estate remains one of the hottest markets in New York
- CNET: Mortgage Rates Will Fall in 2024, but When? Here’s What Experts Think
- Forbes: New York Housing Market 2023: Trends & House Prices
- Houzeo: New York Real Estate Market: Predictions for 2024?
- Real Simple: These are the Top Housing Predictions for 2024, according to Realtor.com
- Rocket Mortgage: Housing Market Predictions for 2024: What Can Buyers and Sellers Expect?