According to Realtor.com, the US housing market affordability will improve in 2024, but challenges will remain.
“We are not going to see a major breakthrough in the logjam that has been the housing market, but 2024 will be a baby step in the right direction.” — Chief Economist Danielle Hale
Mortgage Rates Decline and Home Prices Dip
Borrowing costs will fall somewhat as easing labor and inflation data prompt the Federal Reserve to turn dovish. Realtor.com sees an average mortgage rate of 6.8% for 2024.
With smaller mortgage payments, the share of household income required for a mortgage should slip to 30% by end of 2024.
“It will be a bit of a break after pretty relentless home price increases. It is going to be a big leap forward for buyers mental health.” — Danielle Hale
Lackluster Supply
The market supply scarcity will persist. The lock-in effect where homeowners do not want to give up current low rates will continue.
Relief should come from home builders who have risen to meet surging demand with record construction levels.
Bottom Line
Overall, 2024 should be a modest improvement over 2023. Let us connect to discuss what this means for your plans.