2024 Housing Market Forecast

If you’re planning to buy or sell a home in the near future, you may be curious about what to expect from the housing market in 2024. In 2023, buyers and sellers faced some challenges due to higher mortgage rates, confusion over home price headlines, and a lack of homes for sale. However, many experts are optimistic that we’ve turned a corner and are headed in a positive direction.

Mortgage Rates Are Expected to Ease 

Mortgage rates are expected to ease, which is good news for buyers dealing with affordability challenges. According to Mark Fleming, Chief Economist at First American, mortgage rates have already started to come back down and may fall further. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says that the market is turning more favorable for home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates. She adds that there should be optimism entering 2024 for a better market.

As rates ease, activity in the housing market should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of homes for sale will grow – a trend we’ve already started to see this year. Lisa Sturtevant, Chief Economist at Bright MLS, says that 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% .

Home Price growth is also Expected to Moderate 

The positive news for affordability doesn't stop with mortgage rates. Home price growth is also expected to moderate as inventory improves, although it remains low overall. According to the Home Price Expectation Survey (HPES) from Fannie Mae, which surveyed over 100 economists, investment strategists, and housing market analysts, 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 .

Experts project that 2024 will be a better year for the housing market. Early signs show that we're turning a corner. As Mike Simonsen, President and Founder of Altos Research, 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 are optimistic about what 2024 holds for the housing market. If you're looking to buy or sell a home in the new year, partnering with a trusted real estate agent is the best way to ensure you're up to date on the latest forecasts.