As a discerning individual contemplating a real estate transaction in 2024, It’s crucial to stay informed about the latest market trends. The real estate landscape has seen its share of challenges in 2023, notably due to fluctuating mortgage rates, confusion around property values, and a constrained housing inventory. However, as we approach the new year, there’s a growing sentiment of optimism among industry experts.
A Shift in Mortgage Rates:
A notable development is the recent decline in mortgage rates, providing relief for buyers grappling with affordability issues. Mark Fleming, Chief Economist at First American, anticipates a further decrease in rates, potentially falling below the recent highs near 8%. This sentiment is echoed by Jessica Lautz, Deputy Chief Economist at the National Association of REALTORS® (NAR), who highlights an emerging optimism for 2024, especially for buyers reliant on mortgages.
Increasing Housing Supply:
The easing of mortgage rates is expected to rejuvenate the housing market, encouraging both buyers and sellers who were previously hesitant to reengage. According to Lisa Sturtevant, Chief Economist at Bright MLS, the supply of homes is likely to expand in 2024. This change is attributed to various factors, including shifting family and financial circumstances, even among homeowners who previously enjoyed low rates.
Home Price Trends:
Another positive indicator for market affordability is the projected moderation of home price growth. The Home Price Expectation Survey (HPES) from Fannie Mae, encompassing over 100 economists and housing market analysts, forecasts an average home price growth of 5.9% in 2023, followed by a more tempered growth in the subsequent years.
A Forward-Looking Perspective:
Summarizing the outlook for 2024, Mike Simonsen, President and Founder of Altos Research, predicts modest home price gains, a slight easing in inventory constraints, and an increase in transaction volume. These factors collectively point towards a more favorable U.S. housing market in the coming year.
The Bottom Line: Partnering for Success
For those considering a real estate venture in 2024, the landscape appears promising. However, navigating this dynamic market requires up-to-date knowledge and expert guidance. Collaborating with a trusted real estate professional can provide the insights and support needed to make informed decisions.
Let's connect to explore the opportunities that 2024 may bring in the high-end real estate market.
