2024 Housing Market Predictions: Trends and Expectations

Key Points

• Slight Improvement in Affordability: Modest decline in mortgage rates and housing prices in 2024.

• Rental Market Remains Competitive: Rent prices to decrease slightly; renting more affordable than buying.

• Home Price Growth Slows: Prices to rise at a slower pace, with increased home supply.

• Buyer Assistance Programs: Over 2,000 down payment assistance programs available across the U.S.

2024 Housing Market Overview

The housing market in 2024 is poised for notable changes, with a slight improvement in affordability for homebuyers. Historically high mortgage rates and housing prices are expected to show modest declines. Average mortgage rates are projected to be around 6.8% in 2024, with a decrease to 6.5% by the year's end. Additionally, home prices are also expected to drop slightly, with the typical monthly purchase cost for the median-priced home listing reducing to $2,200, accounting for about 35% of the average U.S. household income.

Market Trends and Predictions

The rental market in 2024 will offer more options due to an increase in new construction, yet it will remain competitive as renting will still be more affordable than buying. The median rent price is forecasted to decrease only slightly, by about 0.2% from the current year. For prospective homebuyers, over 2,000 down payment assistance programs are available, which can be especially beneficial for first-time buyers. The housing market overall is expected to remain strong but will experience a slowdown in price growth, with home prices rising at a more moderate pace.

Expert Insights and Future Outlook

Experts predict a 3 to 4% rise in average home prices in the U.S. for 2024, with a slowdown in growth expected as the year progresses. Rising interest rates, increased supply of homes, and affordability challenges are key influencing factors. The market is expected to remain a seller's market due to the national housing shortage, leading to innovative home purchasing strategies among buyers.

References

1. https://www.money.com/mortgage-rates-and-home-prices-predictions-for-2024/
2. https://www.noradarealestate.com/blog/housing-market-predictions/