Curious about what the 2024 housing market holds for buyers and sellers? Last year saw challenges with mortgage rates, price confusion, and limited real estate inventory, but what's on the horizon? Experts shed light on the positive turn expected.
Mortgage Rates on a Decline
Encouragingly, mortgage rates have begun a downward trend. This dip offers hope to buyers grappling with affordability concerns. Mark Fleming, Chief Economist at First American, suggests a further potential decrease in rates, 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), echoes this sentiment, emphasizing the market's improved prospects:
"For home buyers... the market is turning more favorable, and there should be optimism entering 2024 for a better market."
Potential Rise in Home Inventory
As mortgage rates ease, market activity is likely to surge, enticing both hesitant buyers and sellers to make their move. An increase in sellers listing their homes could lead to a growth in available properties. Lisa Sturtevant, Chief Economist at Bright MLS, anticipates,
“Supply will loosen up in 2024… more moves and more new listings over the course of the year…”
Moderation in Home Price Growth
The positive momentum isn't limited to declining mortgage rates. Forecasts suggest a moderation in home price growth as inventory, while improving, remains relatively scarce. The Home Price Expectation Survey (HPES) anticipates a slowdown, stating,
“...home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025…”
Looking Ahead to 2024
Industry experts collectively project a more favorable housing market in 2024. This positive outlook includes slight home price gains, potential inventory improvements, and increased transaction volumes. Mike Simonsen, President and Founder of Altos Research, remarks optimistically:
“All in all, things are looking up for the U.S. housing market in 2024.”
2024 is predicted to bring a more favorable real estate market. For the latest housing forecasts and guidance on your real estate decisions, partnering with a trusted estate agent in your area. Let's connect and navigate the Greater Atlanta and surrounding areas real estate market together.