Thinking about buying or selling this year? Here are some 2024 housing market predictions to be aware of.

As a seasoned real estate agent, I’ve seen first-hand how confusing (and crazy!) it can feel while navigating the upcoming year’s market. Often, the biggest concern among my clients is getting the most for their money. After all, purchasing a new home is one of the most significant investments we make in our lives.

The past few years have shown how much the market can change and how soon those changes can occur. Whether you’re getting ready to sell your house or purchase a new home, developing some level of understanding of the 2024 housing market predictions is essential.

So, let’s dive into the 2024 housing market predictions and explore some valuable tips for prospective buyers and sellers.

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Mortgage Rates: A Rollercoaster Ride

Mortgage rates are always one of the most significant factors with the power to influence the market. While the past few years saw historically low rates, a silver lining amid the pandemic-induced recession, the 2023 housing market experienced a substantial interest rate bump.

Industry experts caution that these rates were abnormal and unlikely to return. So, while the current mortgage rate of about 7.10% feels high, that feeling is more likely a knee-jerk reaction to 2020’s historically low rates.

So, What’s In Store for 2024?

Last year saw the Federal Reserve hike interest rates, eventually reaching 8% – a response to inflation concerns. The sudden jump, from 2.6% to 8%, undoubtedly shocked the system.

Luckily, experts don’t expect the rates to increase or hang around that 8% mark. Most 2024 housing market predictions expect a change in this trajectory, anticipating further rate cuts around the middle of this year – potentially dropping below 6%.

The impact of these changes on home sales is worth noting. Homeowners enjoying low rates, hesitated to sell and move last year. However, with the anticipated rate cuts, homebuilders are already offering mortgage buy-downs and other incentives in hopes of enticing more buyers into the market.

Market experts forecast an impressive 20% increase in existing home sales, with a robust finish to the year.

2024 housing market predictions

2024 Housing Market Predictions: Pent-Up Demand

Millennials are more ready than ever before to exert their buying power in the market.

They represent a demographic powerhouse comprising approximately 72 million individuals.

As the average age for leaving the family home is 26 and the first-time homebuyer age is 35, there’s a significant segment of about 45.5 million millennials ready to dive into the market once rates become favorable.

However, millennials aren’t the sole players in this waiting game. Other potential buyers and sellers are equally eager to make their move. There are many unique drivers adding to the growing interest in homeownership among this demographic.

Surprisingly, the top reason people want to move is to be closer to family. The impact of rising rents has also intensified the demand for home buying. Despite stabilizing rents, the desire to own a home has reached new highs.

Navigating the Market with Confidence

Timing is key for potential buyers eyeing the 2024 market. The expected mid-year rate cuts present an opportune moment to enter the market. However, being prepared is equally crucial.

Regardless of the 2024 housing market predictions, there are steps every potential homebuyer must take before making the jump. Here are a few things you should add to your to-do list.

  • Explore mortgage options
  • Secure your financial standing
  • Be ready to seize the moment when rates become favorable

On the other hand, sellers should anticipate a tight first quarter followed by a loosening second quarter. The anticipated drop in rates during the third and fourth quarters signals a potential surge in demand. Preparing your home for listing early in the year can position you to capitalize on the anticipated strong finish to 2024.

Conclusion: A Bright Future Awaits

As we navigate the twists and turns of the 2024 housing market, it’s evident that change is on the horizon. The anticipated rate cuts, coupled with pent-up demand from eager buyers, paint a promising picture for 2024 housing market predictions.

In the coming months, keep a close eye on market trends, listen to expert predictions, and most importantly, be prepared to act swiftly when the opportune moment arises. The 2024 housing market is poised for a dynamic shift, and those who navigate it with confidence will likely find success in achieving their real estate goals.

Whether you’re considering entering the market or making a move, staying informed and being proactive will be your greatest assets.