Predictions show U.S. housing market favoring buyers by 2024 – Shiv Telegram Media

Title: U.S. Housing Market Expected to Favor Buyers in 2024, Redfin Predicts

Subtitle: Decreasing mortgage rates and rising supply provide opportunities for homebuyers

The U.S. housing market is set to experience a significant shift in favor of buyers in 2024, according to leading online real estate brokerage, Redfin. This comes as a welcome change after a challenging year in 2023, when high mortgage rates and limited supply drove up housing prices, making affordability a major concern for potential homebuyers.

Amidst the Federal Reserve’s interest rate hikes, many Americans managed to secure low mortgage rates. However, the situation has changed dramatically, and an affordability crisis is now facing potential homebuyers. In 2023, individuals earning the median U.S. income were forced to allocate 41.4% of their earnings towards monthly housing costs if they purchased a median-priced home.

Fortunately, there is hope on the horizon for aspiring homeowners. Mortgage rates are expected to decrease throughout 2024, a development that is likely to prompt more people to list their homes for sale. This increase in supply provides new opportunities for buyers to enter the market and find their dream homes.

Although the average 30-year fixed mortgage rate has already decreased from its 23-year high, it still remains significantly higher than pre-pandemic levels. Redfin predicts that as mortgage rates continue to decline, home prices will follow suit in the second and third quarters of 2024. The surge in supply is expected to outpace demand, resulting in a notable decrease in home prices.

As more sellers enter the market, new listings are predicted to climb. The impact of mortgage rate lock-ins easing and sellers hoping to sell before prices dip further is likely to contribute to the rise in housing inventory. This increase in supply will give buyers a wider range of options and negotiating power.

In addition to the boost in supply, home sales are projected to rise by 5% in 2024, with an estimated total of 4.3 million sales. The National Association of Realtors’ Chief Economist, Lawrence Yun, also expresses optimism about a buyer’s market, predicting a 13.5% increase in existing home sales.

Overall, housing inventory is expected to rise by approximately 30% as more sellers enter the market after delaying their sales in previous years. This surge in listings and market activity is indicative of renewed confidence among sellers, who are eager to take advantage of the changing market dynamics.

As the U.S. housing market undergoes a significant transformation in 2024, with decreasing mortgage rates and a rise in supply, buyers can look forward to improved affordability and more favorable conditions. These developments provide a promising outlook for those aspiring to own a home, as they can take advantage of opportunities in the market that were previously unattainable.