With many buyers forced out of the market, the housing market continued its second consecutive year of slowdown in 2023. Existing-home sales dipped below the 4-million-unit mark, reaching levels last seen in 2010. However, despite a reduced number of buyers, home prices kept increasing. The reason is obvious: there simply weren't enough homes available for sale.
Following two years of subdued activity, the housing market is expected to grow in 2024. Several signs point to an imminent market recovery.
Firstly, the Federal Reserve has halted its interest rate hikes.
But lower interest rates translate to lower mortgage rates. Mortgage rates have potentially peaked in 2023.
These lower mortgage rates will also ease the rate lock-in effect by enticing more existing homeowners to re-enter the market and list their homes.
Nevertheless, even with this increase, the housing supply will continue to remain tight in 2024, further fueling home price appreciation.
Buyers and Sellers should not wait or they continue to miss the market!
