8 Trends to Watch for the 2024 Housing Market

8 Trends to Watch for the 2024 Housing Market

8 Trends to Watch for the 2024 Housing Market

By Mark Spain Real Estate

With a new year right around the corner, it’s time to start making predictions about the 2024 housing market. This past year, buyers and sellers alike saw fluctuating conditions for mortgage rates, home prices, and inventory. That said, we’re curious to see what’s in store for 2024 real estate. 

As the new year approaches, you’ll want incoming real estate trends on your radar! Doing so will be especially helpful if you plan to buy or sell a home in 2024. At Mark Spain Real Estate, our experts are here to share our exclusive market insight on the future of our housing market. Below, we’ve compiled a list of eight trends to watch for the 2024 housing market.  

8 Trends to Watch for the 2024 Housing Market

More Home Sales

Though home prices remained relatively steady throughout 2023, the housing market saw a slight decrease in home sales. The National Association of Realtors (NAR) reported a 15.4% decline in home sales between September 2022 and 2023. A top prediction for the 2024 housing market is more home sales. However, market conditions are expected to pivot in 2024. Depending on how mortgage rates fluctuate, experts predict that home sales activity will increase in the coming year. Though this may not be a dramatic increase, it will hopefully revive the market to some degree. 

Increasing Housing Inventory 

Housing inventory hit a record low in early 2022 and has been sparse ever since, according to NAR. Inventory progressively grew over the past year but has still been unable to meet market demand sufficiently. Because levels are already so low, experts predict things can go nowhere but up in 2024. While this increase won’t necessarily be significant, it will hopefully be a step in the right direction as more home construction and existing homes hit the market.

Steadily Rising Home Prices

The U.S. housing market has seen a rapid rise in home prices over the past few years, with this past year seeing record highs. However, things are expected to slow down in the coming years. While home prices will likely still rise, they are projected to grow at a more moderate pace. So, if you’re a home buyer looking to find a home for cheap, expect prices to stay the same in 2024. However, because prices are starting to slow, you’ll have more time to financially plan out your purchase for a later time. 

Seller’s Market Conditions 

This past year’s limited home inventory has kept conditions in sellers’ favor. With limited supply and growing demand, buyers have been willing to pay more to outbid competition and secure a home. Though inventory is expected to increase slightly, it won’t likely be dramatic enough growth to sway market conditions. That said, we predict that the 2024 housing market will remain a seller’s market, with buyers still facing small inventory and sellers having the upper hand. 

Fluctuating Mortgage Rates

Mortgage rates can be very unpredictable. Taking economic factors, inflation, and Federal Reserve policy into account, there’s often no telling which direction mortgage rates will go. That said, most buyers and sellers must monitor mortgage rates throughout the year to find their answers. Most experts predict that mortgage rates will steadily decline in 2024 as the Federal Reserve sees inflation decrease and unemployment increase.  

Competitive Market Landscape

The U.S. housing market has always fostered a competitive nature. And in 2024, this isn’t likely to change. Considering this coming year’s projected job growth, population growth,You can expect a competitive market landscape in the 2024 housing market. and limited land supply, experts predict a competitive landscape for real estate. Whether buying a home or listing one for sale, make sure to have your game face to beat your real estate opponents! 

Minimal Risk of Housing Market Crash

As a whole, experts do not foresee a housing recession or market crash in 2024. However, some markets are more at risk of price drops and foreclosures than others. According to recent housing data from ATTOM, certain northeastern cities like New Jersey, New York City, and Philadelphia have the highest concentrations of at-risk markets. Meanwhile, most southern markets have more stable footing. That said, the risk of recession will vary depending on the market, but all in all, there’s little to stress about. 

Moderate Conditions for Buying a Home

For those asking, Will 2024 be a good time to buy a house? We’re here to tell you that there is no right or wrong answer. Ultimately, your decision to buy a home will depend on your financial stability and long-term goals. So, if that means investing in a home in 2024 is what’s best for you, then so be it! However, if you are waiting for home prices to decline before beginning your house hunt, you might be waiting for a while. With little projected growth for home inventory, prices will likely still be fairly high in the 2024 housing market. 

Sell or Buy a Home in 2024 with Mark Spain Real Estate

If you want to buy or sell a home in 2024, allow us to help you get the job done. With decades of industry experience, our professionals will help you exceed your real estate goals. Whether you’re looking for your dream home or dream sale, we’ll be here for you every step of the way! Check out our Guaranteed Offer Program for the potential to receive a competitive cash offer on your home in only 21 days. Contact our agents today!

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