Hey there! If you're planning to buy or sell a home in the near future, you're likely curious about what to anticipate in the 2024 housing market. In 2023, we saw challenges like increased mortgage rates, mixed signals about home prices, and a shortage of available homes, making it tough for both buyers and sellers. So, what can we expect in the coming year?

Here's some good news - a lot of experts are feeling positive about the direction we're heading in.

Mortgage Rates Expected To Ease

Hey there! Good news - mortgage rates are starting to drop again, which is a relief for buyers struggling with affordability. Mark Fleming, Chief Economist at First American, says there's a chance they could keep falling.

““Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .””

— Mark Fleming, Chief Economist at First American

According to Jessica Lautz, who is the Deputy Chief Economist at the National Association of Realtors (NAR), she mentioned that...

““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.””

— Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR)

The Supply of Homes for Sale May Grow

With the rates going down, we should see more action in the housing market as both buyers and sellers who were waiting on the sidelines will start getting back into the game. And if more people decide to sell, we might see an increase in the number of homes up for sale, which is actually a trend that has already begun this year. Lisa Sturtevant, the Chief Economist at Bright MLS, mentioned this.

““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%.””

— Lisa Sturtevant, Chief Economist at Bright MLS

Home Price Growth Should Moderate

Hey there! Good news all around! Not only are mortgage rates easing up, but home prices are also expected to stabilize as the housing inventory improves (although it's still on the low side). According to the Home Price Expectation Survey (HPES) by Fannie Mae, a bunch of experts are predicting this positive shift – over 100 economists, investment strategists, and housing market analysts, to be exact.

““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.” ”

— Home Price Expectation Survey (HPES) from Fannie Mae

Looks like 2024 is shaping up to be a great year for the housing market. So, if you're considering a move next year, it seems like things are starting to look up. According to Mike Simonsen, President and Founder of Altos Research, we're on the cusp of some positive changes.

““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.””

— Mike Simonsen, President and Founder of Altos Research

Bottom Line

Are you considering buying or selling a home next year? Well, let me tell you, experts are really optimistic about what 2024 has in store for the housing market! To make sure you stay updated with all the latest forecasts, teaming up with a trustworthy real estate agent is a great move. I'd be thrilled to connect with you and assist you in navigating through this exciting phase in the real estate market!