How is the housing market expected to change in 2024?

COLORADO SPRINGS,Colo. (KRDO)-It's no secret that interest rates are high, sitting at about six and half percent. But many people, especially first time home buyers are waiting for that number to go down.

However, the expert KRDO13 spoke with said that may not be in your best interest. One couple we spoke with said it was pretty overwhelming when they started thinking about buying their first home.

"It's stressful a little bit," said Seth, first time home buyer.

But lately, they've been feeling a little better about the current housing market. One realtor in Colorado Springs confirms buyers have been getting back some of that negotiating leverage.

"Sellers right now may be more willing to give concessions, which you can use to actually buy down your rate.That means lower rates are actually obtainable to some right now.You can also use those concessions to cover some of your closing costs, and especially if you're a first time home buyer, that's going to cover a huge chunk of your closing costs," said Amy Ridgway, Broker Associate from Remax Properties.

So why is this happening?Well those high interest rates are scaring away a lot of people, meaning fewer families are in the market for a house.

"Sellers, right now, of course, like I said, they are a lot more willing to negotiate with you," said Ridgway.

So what would happen if the federal reserve keeps its promise to rein in interest rates this year? Realtors like Ridgway believe that could swing things back in the seller's favor as a greater volume of buyers start competing again for homes.

"I do believe that home prices will appreciate, again, like we saw a couple of years ago, like you said, everybody sort of jumping in on the market at the same time...that's going to drive up prices and it's going to create a lot more competition than we have currently," said Ridgway.

As for Sedona and Seth Cariaga, they're just glad to be jumping into the market now.

"We're not under like a deadline or anything, but we have roommates and we've been saving for a while, so we're excited to have a place of our own," said Seth Cariaga.

Ridgeway said buyers, especially first time home buyers, have  a lot of options available.She also reminds everyone, interest rates shouldn't be the only factor to consider if you're looking to buy.

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