Real Estate
Market Forecast: Opportunities for Home Buyers and Sellers in 2024
A growing share of home buyers and sellers sat
on the sidelines last year as the pace of home sales continued its downward
trajectory.1 In fact, since the Federal Reserve began its series of
interest rate hikes in 2022, the combination of higher borrowing costs and
record-high home prices has fostered the steepest real estate market slowdown
since the 2008 recession.2
Priced out of the market, a generation of
would-be buyers has been forced to delay their plans for homeownership.3 At the same time, current
owners—reluctant to give up their pandemic-era mortgage rates—are waiting to
sell, which has resulted in a sharp drop in listings.4
But there may be some relief in sight: In
December, the Fed signaled that it was done raising interest rates—and
suggested that it could cut rates by 0.75% over the coming year. While
mortgages don’t directly follow the federal funds rate, they typically move in
tandem—so cheaper home loans may finally be on the horizon.5
Lower mortgage rates should bring some
much-needed movement back into the real estate sector. But with a market this
fluid, the home buyers and sellers with an edge will be those who proactively
leverage a real estate agent’s on-the-ground expertise and stay flexible so
that they can quickly adapt to changes.
What does that mean for you? Read on to learn
more about the current state of the U.S. housing market, the potential
opportunities for buyers and sellers, and economists’ predictions for the year
ahead.