If you’re contemplating a real estate move in 2024, whether it’s buying or selling, you’re likely interested in what the experts foresee for the housing market. In 2023, we faced challenges such as fluctuating mortgage rates, conflicting home price reports, and a limited inventory, making it tricky for those looking to make a move. But what lies ahead in the coming year?
The positive news is that many experts are optimistic about a positive shift in the market.
Mortgage Rates Expected to ease recent trends show a decline in mortgage rates, providing a glimmer of hope for buyers grappling with affordability concerns. According to Mark Fleming, Chief Economist at First American, there’s potential for further drops:
“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), echoes this sentiment, emphasizing the improved outlook for home buyers:
“For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.”
Potential Growth in Home Supply As mortgage rates ease, we anticipate increased activity in the housing market as more buyers and sellers re-enter the scene. A rise in sellers listing their properties may lead to a growth in the supply of homes for sale – a trend that has already started to unfold this year. Lisa Sturtevant, Chief Economist at Bright MLS, anticipates:
“Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”
Moderation in Home Price Growth The positive news isn’t just limited to declining mortgage rates; there’s also an expectation of moderated home price growth. This is seen as a result of improving inventory, although it remains relatively low. According to the Home Price Expectation Survey (HPES) from Fannie Mae:
“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”
In summary, the consensus among experts is that 2024 is poised for improvement in the housing market. So, if you’re contemplating a move next year, early indications suggest a positive shift. As Mike Simonsen, President and Founder of Altos Research, succinctly puts it:
“We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”
In conclusion, experts express optimism about the housing market in 2024. If you’re considering a real estate move in the new year, staying informed with the latest forecasts is crucial. Let’s connect to ensure you’re well-prepared for what 2024 has in store for the real estate landscape.