Potential homebuyers and real estate investors are keenly observing market trends. Predictions from industry leaders suggest a shift towards a buyer's market, with key indicators pointing towards more favorable conditions compared to 2023.
Experts predict a 1% fall in home prices during the peak selling seasons of the second and third quarters, marking the first decline since 2012, barring a brief period in early 2023. This drop, though modest, signals a welcome change for buyers grappling with high prices. Concurrently, an increase in new listings is expected due to more homeowners opting to sell, influenced by mortgage rates and a desire to capitalize on current home values​​.
Nationally, sales of existing homes are projected to rise, reaching an estimated 4.3 million in 2024, a 5% increase from the previous year. This uptick is attributed to potential improved affordability and assuming property inventory increases.Â
Mortgage rates, while expected to decline in 2024, still hover around 6% currently. If mortgage interest rates do continue to decrease throughout 2024, buyers will certainly find a more favorable market than 2023 yielded.Â
There will be no slowing the rental market as more young households are opting for renting over buying, primarily due to high housing prices. According to a recent Redfin article, nearly one out of five surveyed believe they will never own a home. As rental demand will remain high, it is likely rent prices will stay steady and even rise in 2024.
The real estate market will see some changes in 2024 but is unlikely to see a drastic overhaul. It is more likely to be a year of gradual, positive changes for homebuyers, marked by slightly lower prices, more listings, and evolving industry practices.