Press release
Realtor.com® 2024 Housing Forecast: Housing Affordability Finally Begins to Turnaround
Buyers will finally see lower prices (-1.7%) and mortgage rates of 6.8% (on average), but may scramble to find inventory (-14%) as current owners happy with
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[{"type":"text","content":"Buyers will finally see lower prices (-1.7%) and mortgage rates of 6.8% (on average), but may scramble to find inventory (-14%) as current owners happy with their low mortgage rates and pandemic home purchases stay put.\nSANTA CLARA, Calif., Nov. 29, 2023 /PRNewswire/ -- Lower mortgage rates and easing prices will help spark the beginning of an affordability turnaround in 2024, according to the Realtor.com® 2024 Housing Forecast released today. But the supply of existing homes will still be tight and renting will remain a competitive option in most markets. This year's forecast also includes price and sales predictions for the top 100 U.S. metros (see table at bottom).\n\n \n \n \n \n \n \n\n \nOverall in 2024, Realtor.com® forecasts that buyers and sellers can expect:\nAverage mortgage rates of 6.8%, with rates edging down over the year to reach 6.5% by the end of the year.Home prices to ease slightly and drop by 1.7% after generally increasing since 2012.Rents to drop by 0.2%, making renting a more budget-friendly option than buying in most markets.A -14% year-over-year drop in inventory, as existing homeowners with low mortgage rates stay put.Home sales to hold steady, rising 0.1% year over year to 4.07 million.\"Our 2024 housing forecast reveals the green shoots we've been waiting to see in the housing market and should give buyers some optimism after a grueling few years. Although mortgage rates are expected to ease throughout the course of the year, the continuation of high costs will mean that existing homeowners will continue to have a high threshold for deciding to move, but we will start to see some interest,\" said Danielle Hale, chief economist for Realtor.com®. \"Moves of necessity – for job changes, family situation changes, and downsizing to a more affordable market – are likely to drive home sales in 2024. Home buyers will continue to seek out markets where they feel like they get the most out of their dollar as they look for homes that better meet their needs.\"\nKey 2023 housing trends and wildcards \nAffordability will officially turn around in 2024!! In 2024, the typical monthly purchase cost for the median priced home listing is expected to be slightly less than $2,200/month, or about 35% of the typical household income. That's an improvement from 2023, when purchase costs ate up nearly 37% of income and the...