Buyers Predicted to Benefit in 2024
In Redfin’s Housing Market Predictions for 2024, buyers can look forward to declining mortgage rates, more inventory, and softening housing prices across America.
According to the report, housing prices are predicted to decrease by 1% year-over-year in the second and third quarters of 2024 mostly due to more new listings entering the market and declining mortgage rates.
The number of new listings is expected to increase. As November 2023 ended, new listings already increased by 6%, the largest increase in over two years, however, the total number of homes for sale is down 7% year over year, according to another Redfin report.
Decreasing mortgage rates are also expected to continue according to Redfin. The 30-year mortgage rate is expected to decline to 6.6% by the end of 2024. As affordability increases throughout 2024, Redfin expects that home sales will also gain momentum.
“The gradual decline in rates combined with the small dip in prices will bring homebuyers some much-needed relief.” Says the report.
Overall, Redfin predicts that home sales will continue to increase throughout the year to an overall 5% year-over-year increase in total home sales to $4.3 million.
Redfin Predicts 2024 Will Be the Year Homebuyers Catch a Break, With Home Prices Falling and New Listings Rising
Redfin – Housing Market Update: Monthly Mortgage Payments Fall; New Listings Post Biggest Annual Uptick in Over 2 Years