Several home types could see their values soar this year as home buyers become more cautious, according to real estate experts.
Home buyers, especially those purchasing a property for the first time, have become more cautious about the type of houses to invest in. This comes as interest rates remain close to the 7% range, pricing many buyers out of the market.
The trend is expected to push up the prices of certain types of homes, per GoBankingRates, citing forecasts from real estate experts.
Here are the homes that may see values rising in 2024:
Smart Homes
Homes with smart technology are most likely to gain value this year amid a rise in interest in modern gadgets. In fact, research conducted by RubyHome Luxury Real Estate found that seven in 10 buyers are actively looking for smart homes this year. The study also found that 78% of homebuyers are willing to pay more for a smart home.
"The homes that have these built-in features, smart lights, or are in one way or another using technology will be the most valuable," Nick Hedberg, realtor, contractor, home improvement expert and founder of As-Is Homebuyer, told GoBankingRates.
Weather-Resistant Homes
Second on the list are homes with resistance against climate change and natural disasters. Part of the reason why these types of homes are expected to see soaring values could be attributed to insurance companies leaving fire- and flood-prone areas such as California.
According to Hedberg, homes that will see an increase in value this year include those with floating docked floors or those constructed with fire-resistant stone blocks.
Sustainable Homes
Homeowners who are not looking for climate-resistant homes could still be in the market for sustainable properties, Hedberg said, citing a study from BRE that found 54% of consumers prefer to purchase properties with a sustainability stamp of approval.
"When we talk about climate, sustainability follows close behind," he added. "Consumers are becoming more and more conscious of their impact on the world and climate."
Functional Homes
Lastly, one of the homes expected to see rising values this year includes those with practical and functional features, according to Ed Brancheau, founder of Sunny Nest Homes.
"Homes with modern, stylish renovations, especially in kitchens and baths, continue to attract attention and drive up prices," he told the outlet. "The trend is clear - homes that combine practicality with sustainability are set to dominate the market in 2024."
