Housing Market 2024 Outlook Looks Good For Pricing, Bad for Demand

Posted December 4, 2023

Home shoppers could see some relief around the corner for next year according to 2024 Outlook by Realtor.com, however, housing demand challenges will likely stay prevalent.

While the high rise in interest and mortgage rates plagued most of 2023, Realtor.com projects a 6.8 percent mortgage rate for the upcoming year. This number is still high by many standards but could be a step in the right direction.

“We’re not going to see a major breakthrough in the logjam that has been the housing market over the last year or so, but 2024 will be a baby step in the right direction,” Chief Economist Danielle Hale said. “It’s going to stop getting worse.”

The rate prediction is a good sign of decline as the mortgage rate breached 8 percent in October.

Home prices are also beginning to slow with home prices dropping 1.7percent. Additionally, rental homes will also become slightly cheaper with a decline of 0.2 percent for rent.

Demand for homes will not be going anywhere and lead Realtor.com to believe existing homes for sale will decline by 14 percent. Leaving homebuilders to make up for the slack, which we are slowly beginning to see as new single- and multi-family startups have experienced a slight bump over the past month.

View the full Realtor.com 2024 Outlook, here.