2024 Real Estate Market Update: Positive Trends and Insights
If you're contemplating a move in the real estate market in 2024, you're likely eager to understand the dynamics that will shape the landscape. Today I want to provide you with insights from my perspective.
Let's start with mortgage rates—there's a positive trend emerging. Recently, rates have begun to decrease, offering a glimmer of hope for those grappling with affordability concerns. Drawing from analysis, the potential for further decreases, as mortgage rates have already pulled back from recent peaks near 8 percent.
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), echoes this sentiment, emphasizing the improved market conditions for home buyers:
“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.”
Now, let's talk about the supply of homes for sale.
As rates continue to ease, the housing market's activity is expected to escalate, with more buyers and sellers re-entering the Market. An increase in sellers listing their properties will lead to a growth in the overall supply of homes for sale. Lisa Sturtevant, Chief Economist mentioned
“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%.”
Shifting gears to home prices, with the Home Price Expectation Survey (HPES) from Fannie Mae, indicating an anticipated moderation in growth. While the average panel expects home price growth to be 5.9% in 2023, projections for 2024 and 2025 suggest slower growth at 2.4 percent and 2.7 percent, respectively.
In summary, as an expert in the field, I project a promising outlook for the housing market in 2024. We're heading into the new year with slight home-price gains, easing inventory constraints, and a modest increase in transaction volume. In the grand scheme, things are looking up for the U.S. housing market.
If you're considering a real estate move in the coming year, trust in my expertise to guide you through the intricacies of the market. As your seasoned partner, I am here to ensure you stay well-informed and make the best decisions for your unique situation. Let's connect and navigate the path to your real estate goals together.