In 2023, high mortgage interest rates and lack of inventory prevented many people from moving. Luckily, 2024 brings the promise of an easier market for buying and selling homes. Experts agree we’ve turned a corner when it comes to mortgage rates, inventory, and home prices.
Let’s look at what’s expected to happen, and what it means for you if you want to make a move in 2024.
Mortgage rates are expected to trend downward.
As we discussed in our 2024 Market Outlook, we expect to see continued downward movement in mortgage rates. “The market is turning more favorable, and there should be optimism entering 2024 for a better market,” says Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR).
“Mortgage rates will almost certainly be much lower this year,” predicts Thomas Ryan, a property economist at Capital Economics. “That’s likely to bring more supply onto the market, as mortgage rate ‘lock-in’ unwinds.”
Inventory will increase.
The mortgage rate lock-in effect refers to a situation where a large number of people are declining to sell their homes even though they might want to move, not wanting to exchange a low-interest-rate mortgage for a new, higher-rate mortgage. This causes low inventory. As rates lower gradually, more people will decide to list—especially those who have compelling reasons to move.
Lisa Sturtevant, Chief Economist at Bright MLS, explains further: “Supply will loosen up in 2024. Even homeowners who have been characterized as being ‘locked in’ to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%.”
Real estate appreciation will moderate.
Home price appreciation will continue, but not at the rates seen in recent hot-market years. As the Home Price Expectation Survey (HPES) from Fannie Mae tells us:
“On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively.”
Moderate home price appreciation is what we like to see! This means that any new home you purchase will continue to grow in value, but you won’t face wildly inflated prices when buying. This is a more sustainable situation for everyone.
Bottom line:
Mike Simonsen, President and Founder of Altos Research, sums it up: “We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024.”
It’s a great year to make a move.
Make a Move with MarketPro:
If you’re thinking of making a move in 2024, you can get a fast cash offer on your current house from MarketPro Homebuyers.
You might ask:
“Can I sell my house fast if it needs a new roof?”
“Can I sell my house fast if it needs foundation work?”
“Can I sell my house fast if it needs new plumbing?”
The answer is always YES! We buy as-is, even if your home is distressed. We can help you with a fast sale so that you can buy your dream house in 2024!
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.
