By: John Olivero

Orange County Real Estate Market Trends: What to Expect in 2024

As we move into 2024, the real estate market in Orange County, NY, continues to evolve, influenced by economic factors, industry regulations, and shifting consumer behaviors. Understanding these trends is crucial for both buyers and sellers, and this blog will explore the key trends you can expect in Orange County’s real estate market this year, including insights from the recent National Association of Realtors (NAR) settlement and expert predictions.

1. Impact of the NAR Settlement on the Market

One of the most significant developments affecting the real estate industry heading into 2024 is the National Association of Realtors (NAR) settlement. In late 2023, NAR agreed to pay $1.18 billion to settle class-action lawsuits alleging that the organization’s rules on broker commissions were anti-competitive. This settlement is expected to considerably impact how real estate transactions are conducted across the country, including in Orange County.

What the Settlement Means for Buyers and Sellers

• For Buyers: The settlement will lead to more transparent pricing models. Buyers may have more leverage in negotiating commission fees, potentially lowering their overall costs when purchasing a home.

• For Sellers: Sellers might experience changes in how commissions are structured and negotiated. More transparency could increase competition among agents, leading to more favorable commission rates for sellers.

These changes will likely make the real estate process more consumer-friendly, emphasizing transparency and reducing the overall cost of buying or selling a home in Orange County.

2. Predicted Market Conditions for 2024

Stable but Competitive Market

Orange County’s real estate market is expected to remain stable in 2024, with steady demand from local buyers and those relocating from more urban areas like New York City. The county’s appeal lies in its suburban tranquility, proximity to the city, and relative affordability compared to neighboring regions.

However, the market is also expected to be competitive, particularly in desirable towns like Warwick, Monroe, and Cornwall. Low inventory levels have been a consistent theme over the past few years, and this trend is likely to continue, keeping prices elevated and competition fierce among buyers.

Interest Rates and Affordability

Mortgage interest rates are anticipated to stabilize in 2024 after several years of fluctuations. While rates are not expected to return to the historically low levels seen during the height of the COVID-19 pandemic, they should remain manageable for most buyers. This stability in interest rates is likely to support continued activity in the housing market, though affordability will remain a concern, especially for first-time homebuyers.

Increased Demand for Suburban Living

The demand for suburban living is expected to remain strong in Orange County, driven by a continued desire for more space and a better quality of life. This trend, accelerated by the pandemic, has led to a sustained interest in properties with larger lots, access to outdoor spaces, and family-friendly neighborhoods. Towns like Goshen, Chester, and Middletown will likely see increased interest from buyers seeking these amenities.

3. Emerging Trends in Buyer Preferences

Sustainability and Energy Efficiency

In 2024, the housing market is expected to place a growing emphasis on sustainability and energy efficiency. Buyers are increasingly looking for homes with energy-efficient features, such as solar panels, windows, and smart home technologies that reduce utility costs and environmental impact. Sellers who invest in these upgrades may find their properties more attractive to potential buyers.

Remote Work and Home Offices

The shift toward remote work is likely to continue influencing the real estate market in Orange County. Homes with dedicated office spaces, high-speed internet connectivity, and flexible floor plans that accommodate remote work will be in high demand. This trend has also increased interest in larger homes that can accommodate work and leisure activities under one roof.

4. Key Takeaways for Buyers and Sellers in 2024

• Buyers should be prepared for a competitive market and consider locking in mortgage rates early to take advantage of current levels. It’s also important to be flexible with your search criteria and explore a variety of neighborhoods to find the best value.

• Sellers can benefit from the continued demand for homes in Orange County but should be mindful of the evolving expectations around transparency in pricing and commissions. Investing in home improvements that align with current buyer preferences, such as energy-efficient upgrades, could make your property stand out in a crowded market.

Conclusion

The real estate market in Orange County, NY, is poised for a dynamic year in 2024, with a mix of stability, competition, and evolving consumer preferences shaping the landscape. Whether you’re buying or selling, staying informed about these trends—and understanding the implications of the NAR settlement—will be key to navigating the market successfully.

Working with a knowledgeable local real estate agent can give you the insights and guidance needed to make the best decisions in this ever-changing market.