Housing Market Predictions for 2024: Will Prices Go Up or Down?

Historically, home sales usually slow down during the Q4 of every year, and understandably so. Aside from the limited inventory of houses for sale, people tend to focus on the upcoming festivities and family time rather than homeownership. 

In September this year, the median sale price of a home in the US sat at $394,300, which was 2.8 percent higher than the year before, marking the third month of YOY price increase in a row. Meanwhile, the overall number of houses for sale was 1.13 million units, 8.1 percent lower than last year. Lawrence Yun, Chief Economist for the National Association of Realtors, says, “There are simply not enough homes for sale”. 

Yun also predicts that a trend reversal in 2024 is possible if mortgage rates dip. He says that sales may rise by as much as 15 percent next year as retreating mortgage rates are expected to bring in more buyers and sellers. He adds that a massive surge in seller listings or new constructions, although unlikely, can help improve inventory levels. 

Redfin lead economist Chen Zhao supports this. While she expects rates to remain above 6 percent, she anticipates a slight increase in home sales next year.

As of November 8, 2023, the average rate on a 30-year mortgage was 7.69 percent according to Bankrate’s latest national survey of large lenders. 

On the other hand, Jessica Lautz, deputy chief economist and vice president of research for the National Association of Realtors (NAR), believes this could be a great time for first-time house hunters. With the overall decrease in housing activity, there is less competition among buyers as well, essentially balancing things out eventually.

Still, given the state of the current market, 2024 might give sellers the upper hand. It seems more likely that inventory will continue to fall behind the significant demand, which means home prices are unlikely to see a huge decline.

If you are looking to sell your existing home or a property you just inherited, now might be a good time to do so. After all, you wouldn’t want to wait until the demand falls as a result of higher interest rates and a weaker economy that will force you to sell at a lower price. 

If you have a TN property that you need to get off your hands because of a life event or a financial emergency, contact Avante Home Buyers. We can help you sell your house fast in Sumner County, TN, no matter its condition. We purchase homes for their fair market value and do not involve middlemen so you can keep all the profits to yourself.