Realtor.com released its 2024 Housing Market Forecast and Predictions report recently and the headline was: “Housing Affordability Finally Begins to Turnaround.”
Synopsis of the data was as follows:
As we look ahead to 2024, we see a mix of continuity and change in both the housing market and economy. Against a backdrop of modest economic growth, slightly higher unemployment, and easing inflation, longer term interest rates, including mortgage rates, begin a slow retreat.
The shift from climbing to falling mortgage rates improves housing affordability, but saps some of the urgency home shoppers had previously sensed. Less frenzied housing demand and plenty of rental home options keep home sales relatively stable at low levels in 2024, helping home prices to adjust slightly lower even as the number of for-sale homes continues to dwindle.
Realtor.com also provides a 2024 Forecast on key housing indicators, which reflects the following expectations:
• Mortgage rates will continue to fall slightly in 2024 and average 6.8 percent over throughout the year, ending at 6.5 percent come year end.
• Existing home median price appreciation will change from a slightly positive 0.2 percentage in 2023 to a negative 1.7 percent in 2024.
• Existing home sales will stay stagnant with a 0.1 percent growth over 2023’s large drop of negative 19 percent.
• Existing home for sale inventory will drop in 2024 by 14 percent, whereas 2023 brought about a 5.7 percent drop in inventory and, on rent growth, they predict a slight drop of 0.2 percent as compared to a slight increase in 2023 of 0.2 percent, which was minimal over the 2022 historical data of a 10.8 percent increase in rent growth figures.
Lauren Bunting is a Broker with Keller Williams Realty of Delmarva in Ocean City, Maryland.
