Understanding the housing market is important to sellers, buyers, industry professionals, and policy makers. Almost everyone has an opinion about what will happen in real estate. Here are three trends we are watching that are driving real estate markets.

Prices are rising over the long term.

Home values remain stable in 2024. Most markets are up year over year. If a local market has lots of new construction (increasing supply), prices are most likely flat or down. If a local market has little new construction (low supply), prices are most likely higher than last year.

In real estate, quickly rising prices or quickly falling prices are undesirable. Historically, the real estate market has been defined by prices rising slowly over the long term. In the current market, if home prices were to fall it would most likely be the result of a deflationary economic cycle.

Interest rates may go down.

There is a lot of discussion about the federal reserve reducing short-term interest rates. If the Fed lowers short-term interest rates, it may or may not result in mortgage interest rates going down. Mortgage interest rates follow the 10 Year Treasury Note. The 10 Year Treasury reflects expectations of inflation in the future whereas the interest rate the Fed is changing reflects current inflation levels.

If mortgage interest rates go down, it lowers the cost of buying a home which results in higher demand for homes and typically causes home prices to increase.

Rent or buy?

Many large institutional investors are trying to convince the American public to rent instead of buy a home. These institutions understand that in the long run, it is better to own a home than rent. If owning a home were a poor investment, institutions would not have spent hundreds of billions of dollars purchasing them.

Today, monthly rent may be less than an equivalent mortgage payment. Over time, rents increase and mortgage payments remain the same (or fall with a refinance). Eventually, the mortgage is paid off. Over the long run, it is better to buy than rent.

Whether you are buying, selling, renting, investing, or developing, we look forward to assisting you with all of your real estate needs.

Become a Real Estate Agent with ERA

Some consider selling real estate an individual effort—we believe it is a team sport. We are here to help you take your real estate career to the next level.

OUR REAL ESTATE OFFICES

California

Temecula
41955 4th St #102
Temecula, CA 92590
951.676.9988

Nevada

Henderson
2855 St. Rose Pkwy
Henderson, NV 89052
702.940.4500

Mesquite
1155 W Pioneer Blvd #104
Mesquite, NV 89027
702.346.7200

Mesquite Blvd Nevada Office
Appt Only
702.346.7200

Las Vegas
1735 Village Center Cir
Las Vegas, NV 89134
702.873.4500

Texas

Austin
Appt Only
512.868.0403

Georgetown
4909 Williams Dr
Georgetown, TX 78633
512.868.0403

Harker Heights
777 Indian Trl
Harker Heights, TX 76548
254.698.4300

San Antonio
19230 Stone Oak Pkwy, Ste. 260
San Antonio, TX 78258
210.477.9400

Utah

Beaver
395 S. Main St. PO Box 2253
Beaver, UT 84713
435.438.1606

Bryce Canyon
1300 N Hwy 89
Hatch, UT 84735
By Appt Only

Eden
2640 N Hwy 162, #106
Eden, UT 84310
801.627.6500

Hurricane
10 N. 100 W.
Hurricane, UT 84737
435.635.4636

Lehi
2901 N. Ashton Blvd #102
Lehi, UT 84048
801.341.0909

Ogden
215 Historic 25th St
Ogden, UT 84403
801.627.6500

Payson
87 N Main St.
Payson, UT 84651
801.341.0907

Richfield
745 S. Main St
Richfield, UT 84701
435.896.9609

Salt Lake
9350 S. 150 E. #410
Sandy, UT 84070
801.341.0901

St. George
201 E. St. George Blvd
St. George, UT 84770
435.628.1606


At ERA Brokers | Colonial | Donahoe we are a brokerage infused with proprietary real estate technology. As part of Brokers Holdings, our organization operates commercial and residential brokerages in Arizona, California, Texas, Nevada, and Utah.

With over 800 agents and staff, we collectively close over 5,500 transactions worth more than $2 billion in value annually. In addition, we manage nearly 2,500 property management units worth nearly $1 Billion in value for our clients.

©ERA Brokers Consolidated All rights reserved | ERA® and the ERA Logo are registered service marks owned by ERA Franchise Systems LLC. Brokers Holdings, LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each franchise is independently owned and operated. Any services or products provided by independently owned and operated franchisees are not provided by, affiliated with or related to ERA Franchise Systems LLC nor any of its affiliated companies. Cal DRE #02192487