2024 Spring Market Predictions

2024 Spring Market Predictions

As winter comes to a close, the 2024 spring housing market is expected to see a range of trends, including mortgage rate changes, home price movements, and sales activity. Here are some key predictions from housing experts:

  • Home Prices: Forecasts for home prices vary, with predictions of flat or slightly decreasing prices nationally, while some specific markets may experience more significant declines. Overall, experts expect home prices to remain high due to low inventory and high demand.
  • Sales Activity: There are mixed predictions for home sales, with some expecting an increase in sales compared to 2023, while others have more conservative estimates. The overall outlook suggests that sales may improve, especially if mortgage rates continue to decrease.
  • Housing Affordability: Affordability is expected to remain a significant challenge for buyers, although lower mortgage rates could provide some relief. However, the overall market conditions are likely to make it a challenging time to buy a house in 2024.
  • Housing Inventory: Limited housing inventory is expected to continue to be a key factor influencing the market, potentially keeping prices steady and contributing to ongoing affordability challenges.

Experts anticipate the market to be characterized by continued high prices, limited inventory, and ongoing affordability challenges, with the potential for some relief from decreasing mortgage rates.

Which Housing Markets Do the Experts Like this Spring?

According to experts, these 10 markets are poised to outperform in 2024:

1. Toledo, Ohio
2. Oxnard/Thousand Oaks/Ventura, California
3. Rochester, New York
4. San Diego/Chula Vista/Carlsbad, California
5. Riverside/San Bernardino/Ontario, California
6. Bakersfield, California
7. Springfield, Massachusetts
8. Worcester, Massachusetts/Connecticut
9. Grand Rapids/Kentwood, Michigan
10. Los Angeles/Long Beach/Anaheim, California

These areas are expected to see significant gains in sales and price growth, making them favorable for homebuyers. The predictions are based on expected sales and price growth, as well as affordability and quality of life amenities.

Spring is Coming Up Roses for the Luxury Market

The luxury real estate market is expected to experience continued growth in 2024, with several trends shaping the industry. Some of the key predictions and trends for the luxury real estate market in 2024 include:

  • Smart Homes: Technology continues to be a driving force in the luxury real estate market, with smart home features becoming increasingly sought after, offering convenience, comfort, and enhanced security.
  • Sustainable Living: Environmental sustainability is a growing concern for affluent home buyers, and luxury properties are now incorporating eco-friendly features such as solar panels, energy-efficient appliances, and sustainable materials.
  • Wellness Amenities: Wellness is becoming a priority for high-end home buyers, and luxury properties are including state-of-the-art fitness centers, spa facilities, meditation gardens, and wellness retreats.
  • Privacy and Security: Privacy remains a top concern for luxury home buyers, leading to an emphasis on gated communities, advanced security systems, and privacy-enhancing features such as soundproofing and landscaping.
  • Customization: Affluent buyers are increasingly seeking personalized and customized spaces that reflect their unique tastes and preferences, leading to collaborations between luxury real estate developers, architects, and interior designers to create bespoke residences.
  • Location: The location of a luxury property continues to play a significant role in its desirability and potential appreciation. Desirable locations with all the amenities of urban life and addresses just outside the city are gaining attention.

That said, the luxury real estate market in 2024 is expected to be influenced by technological advancements, sustainability, wellness amenities, privacy and security, customization, and the desirability of specific locations.

What About Mortgage Rates?

For the most part it looks like rates should hold steady or possibly drop. Overall the mortgage rate predictions for 2024 are as follows:

  • The Mortgage Bankers Association projects rates to fall to 6.1 percent by year’s end.
  • Experts including Bank of America predict that rates will likely be in the 6% to 7% range for most of the year, with a gradual decline expected over the next few months, potentially reaching a range of 6% to 6.5% by spring of 2024.
  • The National Association of Realtors expects mortgage rates to average 6.8% in the first quarter of 2024, dropping to 6.6% in the second quarter.
  • Fannie Mae’s Economic and Strategic Research Group expects mortgage rates to dip below 6 percent by year-end 2024, which is anticipated to boost home sales and refinancing volumes.

The predictions suggest a gradual decline in mortgage rates throughout 2024, with rates expected to be in the range of 5.8% to 7% at the beginning of the year, potentially dropping below 6% by the end of 2024.

Expert Lending Support for Better Informed Decisions

As the 2024 spring housing market unfolds, the dynamics of mortgage rates, home prices, and sales activity are expected to shape the real estate market. Whether you are considering buying or refinancing, staying informed about these trends is crucial for making well-informed decisions.

Embrace Home Loans® provides expert guidance and support for your unique lending needs. Our team of professionals is ready to assist you in navigating the complexities of the 2024 housing market, offering personalized solutions tailored to your specific situation.

Contact us today to explore your options and take advantage of the potential opportunities presented by the changing real estate environment. Let us help you make the most of your 2024 mortgage journey.

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