How Will the Housing Market Change in 2024?

Find out what’s in store for the housing market for the rest of 2024.

I'm here to talk to you about a question I get asked everywhere I go: What is going on with the real estate market? Whether it's at church, sporting events, or coffee shops, people are curious about the state of the market. Some folks think the market is still hot, while others believe it's slowing down. Let me give you an overview of what I am seeing in the real estate market right now.

"While no one has a crystal ball, everything I’ve read suggests that we’ve seen the peak of interest rates."

If we look at the first part of 2024, it has mirrored much of 2023. The number of houses sold and the prices have remained quite similar to last year. The amount of inventory, or houses actively for sale, has also been stagnant compared to this time last year. So, what does that mean for the rest of 2024? Here are my thoughts and predictions for the next six months:

1. Prices: I believe prices will remain stagnant. I don’t see them going up or down significantly because there’s not much room for prices to increase, and the limited inventory will prevent prices from dropping.

2. Interest Rates: While no one has a crystal ball, everything I’ve read suggests that we’ve seen the peak of interest rates. They might come down slightly, but we won’t see them drop to the 5% or 4% range in 2024.

3. Sales: Sales typically see a 10% decrease in the fourth quarter due to seasonal adjustments. In election years, we can add another 5% decrease on top of that, resulting in a 15% drop in sales. However, the election itself doesn’t significantly affect market prices, as historical data over the last 30 to 40 years has shown.

All of these are general trends, and if you’re looking to buy, sell, or invest in real estate, it’s best to sit down with a local professional who knows your area, school district, and price point. They can provide tailored insights for your specific market. If you're interested in having that consultation with us, please reach out. I’d love to sit down and chat with you.