Housing affordability slumped to a multi-decade low this year as soaring mortgage rates failed to pour cold water on high house prices.
But is there hope on the horizon for 2024? A new report from property experts predicts both prices and mortgages will drop next year – albeit modestly.
Researcher said the trend offered ‘green shoots’ to first-time buyers though the market would remain challenging thanks to ‘higher for longer’ interest rates.
According to Realtor.com’s predictions, the average rate on a 30-year home loan will fall to 6.5 percent by the end of next year, down from 7.22 percent today.
Meanwhile house prices will decline slightly by 1.7 percent, from $391,300 at the end of 2023 to $384,400 in 2024.
And the new year will even offer some respite to tenants as rents are expected to drop 0.2 percent, the report states.
Realtor.com chief economist Danielle Hale said: ‘We’re not going to see a major breakthrough in the logjam that has been the housing market over the last year or so, but 2024 will be a baby step in the right direction. It’s going to stop getting worse.’
Researchers also identified the hottest local real estate markets which are expected to see the biggest sales and price growth over the next 12 months.
Toledo, Ohio, came out on top of the rankings, with the average house price expected to grow 8.3 percent while sales will shoot up 14 percent. The median home list price in Toledo in November was $200,000.
It was followed by Oxnard, California, where prices are expected to shoot up 3.3 percent while sales increase by 18 percent.
Rochester, New York came in third place, with prices there expecting to see a 10.4 percent increase. San