Press release
Realtor.com® 2024 Forecast Update: Mortgage Relief is Finally on the Way
Buoyed by a Strong U.S. Economy, For Sale Inventory and the Existing Home Median Sales Price are Now Expected to Close 2024 with Year-Over-Year Gains, at
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[{"type":"text","content":"Buoyed by a Strong U.S. Economy, For Sale Inventory and the Existing Home Median Sales Price are Now Expected to Close 2024 with Year-Over-Year Gains, at 14.5% and 4.6%, respectively \nSANTA CLARA, Calif., Aug. 14, 2024 /PRNewswire/ -- Home price growth and inventory are now predicted to end the year with year-over-year gains, according to the Realtor.com® 2024 Forecast Update. For sale inventory is forecasted to see the biggest change as home sellers patiently wait for buyers instead of delisting. Existing home median sales price is forecasted to increase year-over-year despite elevated mortgage rates, rising inventory, and homes sitting on the market longer.\n\n\"During the first half of this year, we have seen home buyers continue to remain sensitive to mortgage rates, and while home sellers are also affected, the binds of the mortgage rate lock-in effect appear to be loosening for some homeowners,\" said Realtor.com® Chief Economist Danielle Hale. \"These trends mean that home sales in 2024 will eke out only a small gain over 2023, but homebuyers have a fair amount to look forward to in the latter part of the year. Mortgage rates have finally begun to ease, and this trend is expected to continue as improving inflation enables the Fed to relax its tight policy, boosting homebuyer purchasing power. Furthermore, gains in the number of homes for sale mean that buyers have more negotiating power than they have had in recent years which should help buyers and sellers find the middle ground necessary for more sales. Fall has historically been a shoulder season for the housing market that benefits flexible buyers, and this year is setting up to be even more advantageous.\"\nLower Rates Finally ArriveEarlier this month, mortgage rates dropped to their lowest rate since May 2023 and recent data trends, especially relating to job growth and unemployment are providing evidence that Fed policy is working–perhaps working overtime–and a rate cut, even a large one, may be appropriate. Therefore, our forecast for mortgage rates has been revised slightly lower. Our yearly mortgage rate average forecast is slightly lower at 6.7%, and we revised our year-end forecast to 6.3% from 6.5%.\nAnnual Home Sales Rebound-ishDespite affordability headwinds persisting and mortgage rates hindering buying power, we have revised home sales upwards marginally...