Housing Market Predictions for 2024

With mortgage rates and home prices sky-high home buyers are looking for a ray of hope for a positive change in the housing market. The high mortgage rates have posed various challenges to the buyers and all of them are wondering to know the housing market predictions for 2024. Not only this various question arises and among them, the important one is “Will home prices drop in 2024? ‘As the housing market is complex it is difficult to estimate what the next years hold.

 The housing market predictions for 2024 will reflect on the state of housing market and look closely in detail the favorable conditions for the home buyers . Based on the real estate experts there are few key things that we can expect to see in the near future. In the article, we will answer all the queries related to housing market predictions along with stats and expert predictions by various mortgage financing lenders.

Housing Market Predictions for 2024 – Key Takeaways

•  The low levels of inventory mean that sellers are in favorable condition and have the upper hand in the housing market
•  The rising mortgage rates and steep home prices are discouraging potential home buyers
• If the home prices drop in 2024, then both home selling and buying activities will gain a boom

Housing Market Stats for 2024

• The current housing market stats for 2024 available for analysis is that the median home sale price by September 2023 was $394,300  which is 2.8% greater than what it was a year ago
•  As per the National Association of Realtors, the nation had only a 3.4-month supply of housing inventory which is far less for the buyers.
•  The growth of home price rose significantly by 2.6% in August 2023, marking the 7 months of continuous increase
•  As per the latest Survey the average rate on a 30-year mortgage was 7.69 as of latest 8, November 2023.
• As per the FED stated  2 percent inflation rate, the U.S inflation rate in October was 3.2 %  which eventually had an impact on the housing market predictions for 2024

 General Housing Market Predictions for 2024

The housing market is expected to maintain a robust performance in the upcoming years . The next year is round the corner and  you might be wondering if 2024 is the appropriate time for you to buy or sell the home. So if you are ready to make informed decision then it’s important to closely look at the projections of housing market predictions for 2024.

 It is important to note that these are just estimates and the projection may be better than you think. Overall as per the expert housing market predictions for 2024, the result in the second and third quarter of 2024 will be better for both the sellers and buyers .

•  The home price will continue to rise but at a slower pace. The rapid increase we saw in the previous years will hopefully slow down in the coming year. But in brief the prices are expected to rise.
•  As the Federal Reserve is rising the  interest rates to tackle with inflation so that mortgage rates have also surged up . In the second and third quarter of 2024 , a reversal in this trend is projected . As per the housing market predictions for 2024, the interest rates are anticipated to decrease in the second half of 2024 which will increase the overall demand of the housing market.
•  As per the expert housing market predictions for 2024, the supply of the homes will also increase. The lack of home available for sale are also one of the crucial factors that led to increase in the mortgage interest rate. However, as the number of homes for sale increase the sellers have some relief  from the supply shortage.
• In the coming year the housing market will remain competitive. This means that even with the high-interest rates, the housing market will flourish

When will mortgage rates go down in 2024?

 Housing prices have increased a lot in the recent years with the historic high median of $394,300 was recorded by NAR . So for the first half of 2024 ,there are low chances for home prices to drop.  

 The rise in the price of homes are connected to multiple factors that includes housing inventory, interest rate and much more. So in the second and third half you can expect a reduction in the mortgage interest rates. The experts have predicted a potential drop of 5-10% due to multiple factors that include economic uncertainty , local conditions , affordability issues , softening demand and much more.

Will housing inventory increase in 2024?

 Housing supply remain low in the years 2023 with low supply of the homes. The overall number of homes that are  available for sale as of September are 1.13 million units with an overall 8.1 % decline from the previous year. There are not simply enough homes for the sale so the buyers have difficulty in selecting the home.

 The housing market predictions for 2024 also predicted the improvement in the inventory levels for 2024. The increase in inventory can only be possible in case of construction of new homes as well as listing the existing properties for sale .

 Expert outlook on the current housing market overview

 The CEO of Patrick Company Rick Sharga stated that “ I’d characterize the housing market today as boring and likely to stay pretty unexciting for the foreseeable future. Existing home sales are on pace to be at their lowest total since 2009, during the Great Recession. Prices have rebounded over the past few months, and are increasing on a year-over-year basis, but very modestly (1-2%).

Inventory is inching up slightly from nearly historic lows, but still down between 40-50% from the same time in 2019, when we last had a relatively normal number of homes for sale. And mortgage rates continue to rise, discouraging homeowners with lower-rate mortgages from listing their homes for sale and making a home purchase unaffordable for more buyers.”

 Moreover the founder of House Buyers of America said “ Market activity is cooling due to eye-popping home prices and interest rates. But even though the national average 30-year mortgage rate has jumped to a nearly 23-year high, buyer interest remains relatively high and the housing market is still competitive for prospective buyers.”’

 Home Sales Forecast for year 2024

 While there are high hopes for the surge in total sales of home . The improved activity on home sales is a good thing for the housing market for both the sellers and the buyers. The forecast about housing market predictions for 2024 states that the housing market  to be more active in 2024. As the employment condition In the country improve more people will get job and this will improve the housing market conditions. If mortgage rates come down then more activity in the housing market is expected.

Frequently Asked Questions