As we approach the threshold of 2024, the prospective homebuyer or seller is naturally inquisitive about the trajectory of the housing market. The bygone year, marked by elevated mortgage rates, perplexing narratives surrounding home prices, and a conspicuous scarcity of available homes, presented a set of challenges for those contemplating a real estate move. Yet, what does the horizon hold for the coming year?
Encouragingly, a chorus of experts resonates with optimism, suggesting that the housing market has taken a positive turn.
In a promising development, mortgage rates have recently begun a retreat, offering a glimmer of hope to those grappling with affordability constraints. Mark Fleming, Chief Economist at First American, envisions a potential further decline, 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), concurs, asserting that the market is becoming more favorable for home buyers, instilling optimism as we venture into 2024.
With the anticipated easing of rates, the housing market is poised for increased activity as more hesitant buyers and sellers re-enter the scene. A surge in seller listings may expand the supply of homes for sale, a trend that has already commenced. Lisa Sturtevant, Chief Economist at Bright MLS, predicts, "Supply will loosen up in 2024," emphasizing that even homeowners previously 'locked in' to low rates may find changing circumstances prompting more listings as rates approach 6.5%.
As mortgage rates recede, affordability receives a boost not only from lower rates but also from a moderation in home price growth. The Home Price Expectation Survey (HPES) from Fannie Mae anticipates a significant shift, stating, "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."
In summary, the consensus among experts is that 2024 holds promise for the housing market. Early indicators suggest a turning point for those contemplating a move next year. Mike Simonsen, President and Founder of Altos Research, encapsulates the positive outlook, stating, "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."
With experts expressing optimism for the housing market in 2024, those considering buying or selling a home in the new year are well-advised to stay abreast of the latest forecasts. Connecting with a trusted real estate agent is the optimal way to navigate the evolving landscape. As we stand on the brink of a new year, let's connect to ensure you're equipped with the insights needed to make informed decisions in the dynamic realm of real estate.
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