With home prices historically high and inventory still very tight, many prospective sellers and hopeful buyers are feeling nervous about today’s housing market.
The median sale price for an existing home in the U.S. was $387,600 as of November 2023, the fifth straight month of year-over-year price increases. And after rising above 8 percent in October, the average 30-year mortgage rate was 6.88 percent as of late December 2023 — still higher than most homeowners’ locked-in rates, but a welcome reprieve from the recent 20-year highs.
Home prices, mortgage rates and inventory levels will all shape housing affordability in the coming year. Curious where these trends may go? Read on to learn what the experts predict for the 2024 housing market...
Mortgage Rates: They went up in 2022 and are still relatively high. The Federal Reserve has a hand in this, and as long as the economy is strong, expect higher rates.
Home Prices: They’ve been on the rise, and 2024 won’t likely see a price drop. Experts predict a continued increase, but at a more moderate pace.
Inventory: There aren’t enough homes for sale. To improve this, we need more listings or new construction, but that’s uncertain.
Buyer’s or Seller’s Market: Currently, sellers hold the upper hand due to low inventory. This is likely to continue in 2024 unless inventory significantly increases.
Housing Sales: Sales dipped in 2023 but could pick up in 2024 if mortgage rates keep falling.
Price Appreciation: Home prices are expected to keep going up, but not drastically.
Tips: Whether you’re buying or selling, consider getting help from a local real estate agent to navigate the complex market.
In a nutshell, 2024’s housing market remains challenging due to high mortgage rates and low inventory, but it might get more exciting if rates drop as predicted. So, if you’re planning to make a move, an agent’s expertise could come in handy... Call me and lets get started!!