Real Estate Market Forecast: Opportunities for Home Buyers and Sellers in 2024

2023 was a year of frozen inventory and frustrated buyers. What does 2024 hold? Here's our market forecast and what it means for your real estate plans.

2023 was a year of frozen inventory and frustrated buyers. What does 2024 hold? Here’s our market forecast and what it means for your real estate plans.

Mortgage Rates: Relief on the Horizon

The Federal Reserve signaled rate cuts in 2024, and mortgage rates have already started declining from their peak of 8% in late 2023. Most forecasters expect the 30-year fixed rate to settle in the 6–6.5% range by mid-2024, potentially lower if the economy slows faster than expected. Lower rates will unlock demand — and inventory.

Inventory: The Rate-Lock Begins to Thaw

As rates fall, more homeowners will feel comfortable trading their low-rate mortgages for move-up homes. Expect gradually improving inventory through 2024, though it will remain below historical norms.

Prices: Moderate Appreciation Expected

With more buyers re-entering the market as rates drop (and supply still limited), most markets will see moderate price appreciation in 2024 — in the 3–5% range nationally. Markets with strong job growth will outperform.

For Buyers: Don’t Wait for Perfect

Buyers who wait for rates to fall to 3% again may wait forever. The sweet spot is buying now in a market with less competition, then refinancing when rates improve. The equity you build while waiting for others to return to the market is the real opportunity.

For Sellers: Timing Your Return

If you’ve been sitting on the sidelines with a low-rate mortgage, 2024 may finally be the year it makes sense to move. As rates decrease, both your selling price and the affordability of your next purchase improve. Work with your agent on the math for your specific situation.

The Bottom Line: 2024 sets up as a transitional year — gradually improving conditions for both buyers and sellers. Success will favor the prepared.