So, you’re in the market for a new home or thinking about selling your place? Wondering what the deal is with the housing market in 2024? Well, 2023 threw some curveballs at us with higher mortgage rates, confusing home price news, and a shortage of homes up for grabs. But what’s the lowdown for the upcoming year?

The good vibes are in the air, and the experts are feeling pretty upbeat about the whole deal.

Mortgage Rates Taking a Chill Pill
Guess what? Mortgage rates are sliding down the scale. This is great news for folks worried about scraping together enough cash. Mark Fleming, Chief Economist at First American, is all about it:

“Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . .”

Jessica Lautz, the Deputy Chief Economist at the National Association of Realtors (NAR), chimes in:

“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.”

Homes on the Market Could Multiply
As rates mellow out, the housing market is expected to get a little livelier. More buyers and sellers who hit pause might jump back into the game. And guess what? If more sellers list their cribs, we’ll have more homes up for grabs – a trend that’s already starting. Lisa Sturtevant, Chief Economist at Bright MLS, spills the beans:

“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%.”

Cooling Off on Home Prices
And it’s not just the mortgage rates; home prices are set to cool off a bit too. Even though inventory is still playing hard to get, the Home Price Expectation Survey (HPES) from Fannie Mae spills the tea:

“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 a nutshell, the experts are saying 2024 is looking up for the housing market. So, if you’re planning a move, early signs suggest the winds are changing. According to Mike Simonsen, the brain behind Altos Research:

“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.”

To sum it up
The experts are throwing good vibes for the 2024 housing market. If you’re gearing up to buy or sell, the best way to stay in the loop is to team up with a real estate pro. Let’s chat!