2024 Real Estate Predictions

The 2024 real estate predictions are in and we can expect falling rates, more homes on the market, and a highly competitive environment. 2023 was a challenging year for homebuyers who were stuck between high-cost mortgages and a reluctance among existing homeowners to sell. This meant that borrowers struggled to qualify for a price point that would get them the home they wanted because high interest rates meant high monthly payments and fewer homes meant high prices. Well, 2024 is anticipated to be the year when things start turning around. Here’s what you can watch out for and why. 

Fast-Falling Rates 

Fast-falling rates are already happening and we can very reasonably predict the trend will continue all throughout 2024. How can we be so confident that far into the future? The markets began reacting to the Fed’s optimism in November and the average 30-year rate dropped by nearly 1% in a one-month period. Couple that with the fact that the Fed announced mid-December they will be cutting rates three times in 2024, and you have a strong theoretical equation that equals significant movement. If the markets reacted to optimism, how are they going to react to tangible cuts? 

More Inventory

This prediction is a little bit more conservative across the board, but many believe there will be an increase in inventory. Naturally, as rates come down sellers will feel more confident about putting their homes up for sale and finding the next one. However, an interest rate in the 6%’s doesn’t exactly rival an interest rate in the 3%’s, which many existing homeowners want to hold onto. Still, there’s bound to be some uptick.  

Fierce Competition

Whether inventory increases or not, the market is predicted to remain highly competitive in 2024. This is a good time for buyers to begin gearing up with tools that allow them to make more competitive offers, such as a guaranteed pre-approval. For one, a small increase in very low inventory is still low inventory. Secondly, there are countless buyers who have been waiting in the wings for rates to drop. When those buyers rush the market, all the good houses will likely see fast, competing offers.  

2024 Real Estate Predictions Summary

The 2024 real estate predictions say that mortgages will be more affordable, meaning more borrowers have the opportunity to qualify for a loan that will get them the house they want, and there’s a chance that there will be more homes to choose from. In short, 2024 is going to be a better year to buy a home than 2023 was. If you’re ready to find your dream home this year, get pre-approved!