Experts Weigh in on the 2024 Housing Market Outlook
The challenges faced in 2023, such as higher mortgage rates and a shortage of available homes, made it a complex landscape for both buyers and sellers. However, positive shifts are on the horizon.
Encouragingly, many experts believe that we have entered a positive phase. Mortgage rates, which recently showed a decline, offer hope for buyers dealing with affordability issues. According to Mark Fleming, Chief Economist at First American, rates may continue to decrease:
“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, emphasizes the favorable turn for home buyers entering 2024.
As rates ease, the housing market's activity is expected to increase, with more buyers and sellers re-entering the market. This surge in activity could lead to a growth in the supply of homes for sale, as noted by Lisa Sturtevant, Chief Economist at Bright MLS:
“Supply will loosen up in 2024… particularly as rates move closer to 6.5%.”
In addition to mortgage rates, the moderation of home price growth contributes positively to affordability. The Home Price Expectation Survey (HPES) from Fannie Mae anticipates slower growth in 2024 and 2025, with a 2.4 percent and 2.7 percent increase, respectively.
Bottom Line
Experts foresee a more favorable year for the housing market in 2024. Early indicators suggest a turnaround, as highlighted by Mike Simonsen, President and Founder of Altos Research:
“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.”
To stay informed about the latest forecasts, consider partnering with a trusted real estate agent as you contemplate buying or selling a home in the coming year. The outlook for 2024 appears promising, making it an opportune time for those considering a real estate move.
Disclaimer: The information provided in this blog post is based on the latest available data at the time of writing, which is subject to change. It is intended for informational purposes only and should not be considered as financial or investment advice.