Insights From Housing Market Experts Regarding The 2024 Forecast
Contemplating a home purchase or sale soon? Understanding the housing market forecast for 2024 is likely at the forefront of your concerns. In 2023, challenges such as elevated mortgage rates, ambiguous home price trends, and a shortage of available homes impacted both buyers and sellers. However, what lay ahead for the upcoming year?
Encouragingly, numerous experts express optimism, signaling a positive shift in the market.
Anticipated Easing of Mortgage Rates
Recently, mortgage rates have exhibited a downward trend, offering hope to buyers grappling with affordability issues. Mark Fleming, Chief Economist at First American, suggests a potential further decline, stating,
"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) adds,
"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, heightened activity in the housing market is expected as more hesitant buyers and sellers re-enter the arena. The prospect of an increased supply of homes for sale is already becoming evident this year. Lisa Sturtevant, Chief Economist at Bright MLS, predicts,
"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
Favorable signs of affordability include not only the decline in mortgage rates but also the expected moderation in home price growth as overall inventory improves. 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, experts foresee a brighter year for the housing market in 2024. Whether you're planning to make a move next year, early indicators suggest a positive turn. Mike Simonsen, President and Founder of Altos Research, summarizes,
“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.”
Overall, experts express optimism for the housing market in 2024. If you're considering buying or selling a home in the coming year, staying informed about the latest forecasts is best achieved through collaboration with a trusted real estate agent. Contact us now.