Housing market predictions for 2024

If you are a corporate professional in the global mobility industry, your program likely moves some employees in the U.S. that are homeowners in their departure location and/or who want to be a homeowner in their destination location. So understanding what to expect in the housing market coming into 2024 and staying on top of such a dynamic and everchanging market is critical.  So when I saw this article from Zillow, 8 Housing Market Predictions for 2024, it seemed worth raising all of their 8 points as they have validity heading into the new year, especially since 2023 seemed to be so demoralizing for many aspiring home buyers. There are a couple of interesting predictions for renters too.

Before we jump into their predictions, I asked our own in-house real estate expert, Kelly House, to share his thoughts on the article: 

“2024 is not likely going to bring much relief to would be buyers from an interest rate standpoint. We saw at the end of 2023 that even a modest reduction in interest rates brought buyers back into the market when traditionally real estate is slow during the winter and holiday season. So if we were to see further easing of rates into 2024, it will likely have the same effect of more buyers coming into the market creating the demand for fewer homes a reality once again.”

Now, let's consider the 8 points that the economists from Zillow shares:

1. Home buying costs will level off
2. More homes will be listed for sale
3. The new starter home will be a single family rental
4. Expect stiff competition for rentals near downtowns
5. “Fixer” homes will become more attractive to traditional buyers
6. More home improvements will be done by homeowners
7. Home buyers will seek out nostalgic touches and sensory pleasures
8. Artificial intelligence will enhance home search and financing

You may not be too surprised by any of these predictions as currently it's really what we have been seeing throughout 2023. One of the biggest joys I got was the mention of pickleball in the article. I'll let you read the article to see how it fits into the big picture, but here is another article that speaks to the impact of a nearby pickleball court going in.

This Forbes article also shared an additional positive possibility:
“One promising sign entering the new year: mortgage rates, which remained stubbornly high throughout 2023, have steadily declined over the last couple of months. The average 30-year fixed rate now sits at 6.69% for the week ending January 25, according to Freddie Mac.” Their primary point when it comes wo answering the question of when will the housing market recover is only when the inventory increases and an easing of upward pressure on home prices helps things to level off. They suggest that when we start to see mortgage rates get back to upper 4% or lower 5%, we'll see improvement.