Are you eager to purchase your dream home this year? Your decision to buy your new home is quite significant. So, while you take the leap toward embarking on your home-buying journey, this post simplifies the matter. Let's evaluate the most common trends and predictions made for the housing sector in 2024. So, are you ready to learn further? Let's read the points below.
A Year-End Recap & 2024 Predictions –
Not everyone is blessed with enough savings to buy a home. Alternatively, investing all your available funds in a single investment (like a home) is a mistake. You need to make plans for your future. In such scenarios, the home loan 2024 is a blessing in disguise.
A home loan is a practical way to cover the amount required for purchasing an apartment. It allows people to extend the cost of the property over a long time frame. In addition, it enables homeownership without an urgent need for a considerable upfront cost.
So, as 2024 has started, the changing aspects of home loans hint at a few things. So, you must understand the housing loan rate predictions before buying your dream home. You also need to understand the home loan trends and predictions of the current property market. So, let's discover the top home loan trends in 2024 from the given points.
Understanding Home Loan Trends to Look for in 2024 –
For housing loan borrowers, 2022-2023 have been years where they saw the EMI rates going upward. Housing loan EMIs have increased by over 20% during these years. Nonetheless, 2024 comes up with new predictions. As per housing interest rates today, the interest rate is anticipated to reduce by 0.5% to 1.25%. Existing home loan borrowers may gain more from the falling .
With RBI going for the series of repo rate hikes from May 2022, all lenders started raising the interest rates. Nonetheless, inflation also cooled down, and it indicated a significant rise. That's why the RBI is anticipated to start lowering the repo rate in 2024's second quarter (June or July).
Reduced retail inflation may also help RBI to reduce the repo rates. However, professionals think that they might not stay limited to one cut once the reductions start. The possible reduction in the RBI repo rate 2024 is altogether a debatable concept.
Rise of Digital Lenders –
This year, digital lenders will do the rounds by helping you shift from offline applications to online processes. The automated process they implemented simplifies your application altogether. It makes it simpler for borrowers to navigate the current lending procedure without manual work.
New Mortgage Trends –
Next comes the mortgage brokers, who will revolutionise the recent home loan world. 2022 has witnessed a whopping percentage of new home loans getting facilitated by brokers. The home loan rates rose rapidly last year, with more Indians reconsidering financing. The trend is going to change this year.
The Advent of Eco-Friendly Spaces –
Environmentally friendly or sustainable living space is in high demand these days. The Indian house hunters have started relying on the concept of clean and green living. So, real estate developers have already started developing buildings that come with a minimum ecological footprint.
Modern houses implement green building techniques, environmentally conscious materials, and energy-efficient devices. This trend is going to become more popular this year.
The Need for Affordability –
Affordable homes have become a topic among millennial home seekers. These houses were popular in 2023. And 2024 is going to see a refined version of this concept. The rising population in Indian metropolitan cities makes affordability the top concern.
Outlining The Role of Technology –
Implementing AI-driven solutions will reshape the operational efficacy of housing loans. The shift from offline to online documentation and KYC during the pandemic has transformed the real estate industry. This approach will be implemented into the housing loan system for more robust digital practices. The adoption of Blockchain and AI is set to create more room for improvement in the housing loan landscape in India.
Wrapping up
2024 has just begun, and it hints at a new ray of hope for prospective and previous property buyers. So, the home loan rates are expected to reduce. There's a higher chance for house hunters to find their dream home at reasonable housing interest rates.
As of 2024, the current home loan rates are expected to remain at a reduced level and not negatively impact the residential universe. The income outlook and affordability will be significant parameters determining the year's residential sales.
