5 Housing Market Predictions in the Current Fiscal

Image Courtesy: Pexels

More articles

Smriti Rajan
Smriti Rajan
Smriti Rajan comes from a political science and literature background, having an immense passion for writing across varied topics. She has written several articles and blogs for diverse audiences worldwide. She has produced several research publications, policy frameworks, and opinion pieces for think tanks, government institutions and corporates. Alongside this, she writes for a large Fortune 500 clientele and is a key contributing writer for Wikistrat on their EMEA desk. Currently, she resides in India.

The limited supply of homes for sale, high prices, and persistently high mortgage interest rates make things difficult for home buyers. Even though the housing industry will slow down in many ways, home prices will increase. In 2024, more homeowners will likely put their houses for sale, which might result in greater time spent by these properties on the market. 

Will buying a house in 2024 be smooth sailing for Americans? Let’s explore 5 housing market predictions for the current fiscal.

1. The Inventory of Homes Is Growing

During the recent housing bubble, the inventory of houses for sale has been steadily falling year over year as a result of demand outstripping supply.  The inventory started moving in a different direction, and active listings were up 13% from a year ago. Part of the reason there are more listings is that more homeowners are choosing to sell, which in addition to the high expenses is driving potential purchasers out of the market. 

2. Change in Mortgage Rates

Fewer prospective homeowners are seeking loans as a result of the rise in mortgage rates. But mortgage rates are expected to continue to climb throughout the year. This looks positive for would-be homeowners concerned about rising rates and housing costs. Even while mortgage rates are unlikely to move much or rapidly, it’s still a good idea to keep a watch on the market and make strategic plans.

3. Home Prices on the Rise

Low mortgage rates, a lack of supply, and the work-from-home trend will boost house sales but probably cause prices to rise in 2024.  

  • Supply Shortages

Construction of new homes has been stymied by supply chain and labor shortages. In the past, new home construction has helped regulate the demand for homes. However, home prices may continue to climb as a result of these shortages. 

  • Work-from-Home Trends

Real estate prices will increase in more desirable parts of the country as long as there is continual interest in remote employment. One in five homeowners will consider moving to the suburbs because they no longer need to be situated near their places of employment in the city. 

Home buyers will need to make sure they can afford the properties they want to buy, especially in some areas of the country, as a result of the rise in housing prices. 

4. Real Estate Firms Laying People Off

With less activity in the housing market, real estate companies are announcing layoffs. Redfin said it cut about 8% of its employees and Compass said it would reduce its workforce by 10%. Demand for Redfin’s services was 17% below expectations, Redfin CEO Glenn Kelman said. As a result, the company isn’t generating enough work for agents and support staff. “Today’s layoff is the result of shortfalls in Redfin’s revenues, not in the people being let go,” he said. 

At Compass, 450 of its 4,500 employees will be cut, “due to the clear signals of slowing economic growth,” according to a company statement.

5. Millennials Driving the Housing Market Upward

Millennials, who are between the ages of 26 and 35, will be planning to purchase their first houses. Millennial buyers’ desire may cause prices to remain higher despite an increase in the quantity of available houses. 

The Bottom Line 

Based on forecasts, the housing market will change in 2024. The housing market will continue to cool off, house sales will decline, and home prices and mortgage rates will continue to climb. However, the number of properties on the market will likely increase, which is good news for homebuyers. 

Latest Posts