What to Expect from the Housing Market in 2024
The housing market is one of the most dynamic and unpredictable sectors of the economy. It can be affected by various factors, such as supply and demand, interest rates, consumer confidence, demographics, and more. As we approach the end of 2023, many people are wondering what the housing market will look like in 2024. Will it be easier or harder to buy or sell a home? Will prices go up or down? Will there be more or less inventory? How will the pandemic, inflation, and climate change impact the market?
In this blog post, we will try to answer these questions by looking at some of the latest housing market predictions and trends for 2024. We will also share some tips on how to navigate the market and make the best decisions for your situation. Whether you are a buyer, seller, renter, or investor, this post will help you prepare for the future and achieve your real estate goals.
Housing Market Predictions for 2024
Predicting the housing market is not an exact science, but there are some sources that provide reliable and data-driven forecasts based on current and historical trends, economic indicators, and expert opinions. Here are some of the most reputable sources and their predictions for the housing market in 2024:
- Zillow: Zillow is one of the leading online real estate platforms that offers home value estimates, market reports, and forecasts. According to Zillow, the housing market will see more homes for sale, improved affordability, and increased demand for single-family rentals in 2024. Zillow predicts that home values will hold steady in 2024, falling 0.2% on average, and that mortgage rates will remain high but stable, averaging 6.8% for a 30-year fixed-rate loan.
- Realtor.com: Realtor.com is another popular online real estate platform that provides listings, insights, and tools for home buyers and sellers. According to Realtor.com, the housing market will see a slight dip in home prices, a modest increase in home sales, and a continued decline in inventory in 2024. Realtor.com forecasts that the median home price will drop 1.7% year-over-year, that existing home sales will rise 0.1% to 4.07 million, and that inventory will shrink 14% compared to 2023.
- Search Engine Journal: Search Engine Journal is a leading online publication that covers the latest news and trends in search engine optimization, digital marketing, and online business. According to Search Engine Journal, the housing market will see a mix of improvement and risk in 2024, depending on the local market conditions and the impact of external factors such as foreclosures, unemployment, and underwater mortgages. Search Engine Journal identifies the markets in California, New Jersey, and Illinois as the most at risk for housing declines, while the markets in Texas, Florida, and Arizona as the most resilient and promising.
As you can see, there is no consensus among the sources on what the housing market will look like in 2024, but there are some common themes and patterns that emerge from their predictions. Here are some of the key takeaways and implications for buyers, sellers, renters, and investors:
- The housing market will cool down but not crash: After two years of rapid growth and record-high prices, the housing market will slow down and stabilize in 2024. This means that buyers will have more options and less competition, while sellers will have to adjust their expectations and strategies. However, this does not mean that the market will collapse or crash, as there is still strong demand and limited supply, especially for affordable and entry-level homes. The market will remain expensive, but not as unaffordable as it was in 2021 and 2022.
- Mortgage rates will remain high but steady: One of the main drivers of the housing market slowdown is the rise in mortgage rates, which makes borrowing more costly and reduces the purchasing power of buyers. Mortgage rates have been climbing since 2021, reaching 20-year highs in 2023. In 2024, they are expected to stay high but level off, as the Federal Reserve tries to balance the inflation and growth pressures. This means that buyers will have to factor in the higher interest rates when budgeting and planning for their home purchase, while sellers will have to consider the impact of the rates on the buyer pool and demand.
- Inventory will continue to be tight but increase slightly: Another major factor that affects the housing market is the availability and variety of homes for sale. Inventory has been historically low for the past few years, creating a seller’s market and driving up prices. In 2024, inventory is expected to increase slightly, as more homeowners decide to sell their homes and take advantage of the high prices, and as more new construction and single-family rentals come online. However, inventory will still be below the normal and balanced levels, especially for lower-priced and starter homes. This means that buyers will have to act fast and be flexible when they find a home they like, while sellers will have to price their homes competitively and realistically to attract buyers.
- Do your research and homework: The housing market is complex and diverse, and it can vary widely depending on the location, type, and price of the home. Do your research and homework, and gather as much information and data as possible. You should use reliable and updated sources, such as Zillow, Realtor.com, and Search Engine Journal, to find out the latest market trends, predictions, and statistics.