What the Pros Say: 2024 Housing Market Predictions

"Will 2024 be your year to move?" It's a question swirling in the minds of many eager homeowners, especially after the rollercoaster ride of 2023's housing market. Soaring mortgage rates, confusing price fluctuations, and an inventory shortage threw curveballs at buyers and sellers alike. But don't pack away your moving boxes just yet! 2024 promises a whole new chapter, and we're pulling back the curtain to reveal what experts predict will be a fascinating, and perhaps turbulent, journey. Buckle up, folks, because this year might just be the key to unlocking your homeownership dreams, or finding the perfect buyer for your beloved abode. Let's dive into the crystal ball and explore the mysteries the 2024 housing market has in store."

Fortunately, numerous experts express optimism that we have reached a turning point and are moving in a favorable direction.

Mortgage Rates May Ease!

Hope flutters on the horizon like a flag in the wind. Mortgage rates, after a relentless climb, have finally started to retreat, opening doors for more buyers to unlock their dream homes. This newfound affordability sends ripples of excitement through the market, and experts like Mark Fleming, Chief Economist at First American, are eager to shed light on why this trend might not be a fleeting mirage. Buckle up, because we're diving deep into the intricacies of falling rates, exploring their potential impact on buyers and sellers, and ultimately, painting a vibrant picture of what the housing landscape might look like with this welcome shift in the wind. So, dust off your "to-be-owned" list and gather your financial armor, because the path to homeownership might just be getting a whole lot smoother.

Good news for homebuyers! Soaring mortgage rates that topped 8% are now on the way down, and the trend might continue.

According to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR),

After a bumpy fall, the housing market is finally smoothening out for buyers! Soaring autumn rates are fading, paving the way for a bright and optimistic 2024, where mortgage burdens will feel lighter and homeownership dreams might just come true.

Potential Increase in Homes for Sale

Buckle up, the housing market might be shifting gears! With mortgage rates cooling down, expect to see buyers and sellers who paused due to the chill blast of high rates re-entering the scene. This influx could unleash a wave of new listings, finally easing the supply strain we've felt all year. Brace yourselves, folks, the path to homeownership might just get a whole lot smoother, says Lisa Sturtevant, Chief Economist at Bright MLS.

In 2024, the housing supply is expected to become more abundant. Even homeowners previously considered "locked in" to low rates will increasingly discover that evolving family and financial situations will prompt more relocations and an uptick in new property listings throughout the year, especially as rates approach the 6.5% mark.

Moderation in Home Price Increases

Double dose of good news for buyers! Not only are mortgage rates taking a breather, but home price growth is also set to mellow out as the supply picture shows signs of improvement. This potent one-two punch could unlock the door to affordability in 2024, as predicted by the Home Price Expectation Survey from Fannie Mae, a gathering of over 100 housing experts.

Brace yourselves for a shift! After a rapid 5.9% climb in 2023, home prices are predicted to ease their pace in 2024 and 2025, settling at a cool 2.4% and 2.7% growth, respectively.

In conclusion, industry experts foresee a more promising year for the housing market in 2024. If you're contemplating a move next year, be aware that early indications suggest a positive shift is underway. As expressed by Mike Simonsen, President and Founder of Altos Research:

As we enter 2024, there are modest gains in home prices, a gradual alleviation of inventory constraints, and a slight uptick in transaction volume. In summary, the outlook for the U.S. housing market in 2024 appears optimistic.

Bottom Line

Industry experts express optimism regarding the prospects of the housing market in 2024. If you're considering buying or selling a home in the upcoming year, the most reliable approach to staying informed about the latest forecasts is to collaborate with a trusted real estate agent.