Expert Quotes on the 2024 Housing Market Forecast

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Elaine Quigley, CBR, CRS, GRI Elaine.Quigley@commonmoves.com Cell: (508) 735-5161 www.EQRE.com
Elaine Quigley, CBR, CRS, GRI
[email protected]
Cell: (508) 735-5161
www.EQRE.com

If you’re thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what’s on the horizon for the new year?

The good news is, many ex­perts are optimistic we’ve turned a corner and are head­ed in a positive direction.

Mortgage Rates Expected To Ease

Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with afford­ability challenges. Mark Flem­ing, Chief Economist at First American, explains how they may continue to drop:

“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), says:

“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.

The Supply of Homes for Sale May Grow

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:

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 Should Moderate

And mortgage rates pulling back isn’t the only positive sign for affordability. Home price growth is expected to moderate too, as inventory improves but is still low over­all. As the Home Price Expec­tation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing mar­ket analysts, says:

“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.

To wrap it up, experts proj­ect 2024 will be a better year for the housing market. So, if you’re thinking about making a move next year, know that early signs show 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.

Bottom Line

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, the best way to ensure you’re up to date on the latest forecasts is to part­ner with a trusted real estate agent. Let’s connect.

May the upcoming year be a canvas of beautiful experi­ences, painted with love, kind­ness, and compassion. Let’s celebrate diversity, spread positivity, and uplift each other in our unique journeys.

 

Elaine Quigley, CBR, CRS, GRI

[email protected]

Cell: (508) 735-5161

www.EQRE.com

 

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