(The Yorkshire Analysis) — The housing market will likely slow down, but not drop, in 2024. There will likely be less buyer demand, lower prices, and higher borrowing rates.

The Shifting Landscape

Interest rates are a wild card, and may drop with economic cooling, or rise due to inflation concerns. The chronic shortage of homes may finally ease, and supply may increase, balancing the market.

Possible Scenarios

If interest rates stabilize and inventory increases, we could see a moderation in price growth and rental market increase, with some markets experiencing slight dips. If a potential recession throws market dynamics into disarray, price corrections could occur, but affordability may not improve significantly.

Top Housing Market Predictions for 2024

Home prices can drop in 2024 if buyer demand falls, which will likely occur as a result of higher interest rates or a general weakening of the economy.

Fannie Mae’s recent survey of housing experts predicts that house price growth will moderate in 2024 and 2025, from a high of 5.9% in 2023. This represents a significant departure from the anticipated 5.9% surge in 2023.

The deceleration in price growth doesn’t necessarily translate to price drops, and increased inventory may ease competition and put downward pressure on prices, particularly in overheated markets. Focusing on fundamentals like location and long-term value can be a wiser strategy than chasing volatile price movements.

While home values are expected to inch sideways, existing home sales are expected to plunge 8.5% in 2024 compared to 2023.

Zillow’s current forecast doesn’t fully incorporate recent developments, like the Federal Reserve hinting at potential interest rate cuts in 2024. Zillow’s national forecast serves as a broad brushstroke, but factors like local job markets, population dynamics, and inventory levels will heavily influence how individual markets navigate the coming year.

Will Home Prices Crash in 2024?

Real Estate will continue to surge in 2024 due to several factors, including the fact that millennials are now the fastest-growing segment of home buyers. The demand for homes is increasing among baby boomers, who now make up the largest generation of homebuyers in the US. Younger boomers are moving the greatest distance, and all generations agree that the most common reason to sell is to be closer to friends and family.

The report suggests that demand for homes is increasing among baby boomers and Generation Z while decreasing among younger and older millennials. Buyers are moving farther distances and view owning a home as a good investment, so the current trend of real estate prices will not see a major downfall. These predictions are just that – predictions. They can help you make plans if you’re planning to buy or sell a home.


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