Will House Prices Go Down in 2024: The Expert Lowdown

The housing market has been all over the news lately, and many wonder if house prices go down in 2024. As a homeowner or buyer, you’re probably feeling a bit overwhelmed with all the info out there. Don’t worry we’ve got you covered. Whether you’re thinking of selling a house inspection checklist or just curious about the market, this article will give you the facts on real estate forecasts and what the experts are saying about the housing market in 2024 and beyond.

Current Market Housing Supply

Let’s start with where we are now in housing inventory. The US housing market has been hot for a while but there are a few things that might stir the pot. Two big ones to watch are rising interest rates and more homes coming on the market.

When mortgage interest rates go up it makes it more expensive for people to borrow money to buy a house. This might slow things down a bit. But don’t panic – experts don’t think we’re heading for a crash like 2008. Banks are more careful about who they lend to these days.

During the pandemic, many people bought homes because borrowing was so cheap. This combined with not enough homes being built pushed prices up. Now things are starting to slow down a bit.

2024 Market Overview

So what can we expect in 2024? Well, it’s been a tough year for people trying to buy homes. Many are wondering if they’ll ever get to own a house. But here’s the good news – experts don’t think we’re heading for a housing market crash. House prices won’t drop much if at all.

One thing that makes it tough for buyers is that mortgage rates are still high. But there’s hope on the horizon – these rates are expected to come down in the next few months and years. This will make it easier for more people to afford homes.

Overall the housing market predictions really will start to look better in the 2nd half of 2024. If you’re thinking of buying or selling a home this could be good news.

Trends and Stats

Let’s look at the buyer’s market and some numbers. In New York state fewer people are listing their homes for sale than last year. This is because many homeowners are waiting for better market conditions to sell.

The New York State Association of Realtors (NYSAR) reported that in the 2nd quarter of 2023, new listings were down 22.4% from the same time last year. That’s big!

Not only are fewer people listing their homes but fewer existing homes are selling too. Closed sales were down 22.6% from the previous year. In some areas, the drop was even bigger. For example in Orleans and Putnam counties listings were down 37.3% and 34.5% in June 2023 from the year before.

It’s not all bad news though. Two counties (Allegany and Essex) saw an increase in listings and four counties had more closed sales. The market can vary a lot depending on where you are.

2024 Predictions

So what do the experts think will happen to home builders in 2024? Most of them think the US housing market will be strong for the next 5 years despite the challenges we mentioned earlier.

When it comes to home prices experts think they’ll stay the same throughout 2024. Maybe a small decrease but less than 2% on average. That’s not a big deal in the grand scheme of things.

As we mentioned earlier things will get better in the 2nd half of 2024. If you’re thinking of buying or selling a home this could be good news.

Market Insights

The COVID-19 pandemic has had a big impact on the housing market and we’ll see those effects for the next few years. But it’s not just the pandemic that’s shaping the market. New technologies, changing demographics, local job markets, housing markets, and the rise of remote work are all in play.

If you want to stay in the know about what’s happening in the housing market check out the U.S. News Housing Market Index. It’s data-driven information about the housing market nationwide.

Housing Market Crash

Now let’s get to the big question on everyone’s mind: Is there going to be a housing market crash? When it comes to real estate forecasts, New York experts say no. Why? Because New York has a strong economy and a stable job market.

Here are some New York facts:

• Unemployment rate is 4.5%
• Median household income is $127,100
• Population growth is 0.37%
• Diverse economy

All of this means the housing market in New York should be steady shortly. So if you’re wondering “Is New York a safe place to live?” from a housing market perspective the answer seems yes.

Experts

Some people are worried about a housing market bubble but most experts don’t think it will burst. They think home sales will be lowest next year and then gradually increase after that.

As for home prices, some experts think they might go down 5-10% next year. But remember that’s not a crash. It’s more like a small correction.

One reason experts aren’t too worried about a crash is they think the pent-up demand and housing supply will balance out in the next 5 years. That balance between supply and demand keeps the market steady.

House Price Factors

Two big factors that impact housing and rising home prices are interest rates and inflation. If interest rates go up a lot or we see high inflation it will make houses less affordable for many people. That will lead to less demand and prices will come down.

The good news is inflation has been cooling off lately. In June 2024 it was only up 3.0% from the year before. That’s much better than it was!

The Federal Reserve which controls interest rates is expected to start lowering its benchmark rate later this year. When interest rates go down it usually means lower mortgage rates. That will make it easier for more people to buy homes which will push prices up.

Regional Housing Market Variations

Remember the housing market isn’t the same everywhere. Some areas will see property prices go down, others will see them go up. It all depends on local conditions.

For example, areas where prices went up a lot during the COVID-19 pandemic will see prices ease off a bit. But other areas will see prices continue to go up.

If you want to know what’s happening in your area check online listing sites or talk to a local real estate professional. They can give you a better idea of what’s happening in your real estate housing market.

Buying a Home in 2024

If you’re thinking of buying a home it’s a good idea to start preparing well in advance. Experts recommend saving for a down payment 5 years before you want to buy.

Here are some tips to get you ready:

1. Try to increase your income – maybe by switching jobs or asking for a raise
2. Pay down any debts you have
3. Work on your credit score
4. Research the housing market in your area
5. Start saving as much as you can for a down payment

Remember it’s not about timing the market perfectly. It’s about making a decision that’s right for you and your situation.

Mortgage Rates and Buying

Mortgage rates have been high lately which has made it harder for many people to buy homes. Experts think rates will stay around 7% for most of 2024. But there’s good news on the horizon: rates will be down to 5.5-6% in the next 2 years.

In the meantime, more people will opt for adjustable-rate mortgages. These can offer lower rates at first but can go up over time. Most experts think once rates come down about 90% of Americans will go back to 30-year fixed-rate mortgages.

Government and Housing Market

Government policies can have a big impact on the housing market. Some programs support homeownership which will help keep the market stable. But changes to tax laws can also shake things up.

One thing to note is lending standards are much stricter now than they were before the 2008 crash. So we won’t see a crash caused by too many bad loans.

Expert Insights

In summary here’s what the experts are saying:

• It will be stable in the short term
• Home prices will go up 15-25% in the next 5 years
• The market will shift from a seller’s market to a more balanced market in the next few years
• Sales will increase gradually

Selling Your Home in 2024

If you’re thinking of selling your home in 2024 you might be wondering what are your options. While many people automatically think of using a realtor other options might be better for you.

One option is to sell to a cash home buyer in Nassau County like Leave the Key Homebuyers. They operate in New York, including Long Island, Nassau County, Suffolk County, Queens, Brooklyn, Staten Island, and Upstate New York. Here’s why this might be a good option:

1. They buy houses in as-is condition so you don’t have to worry about repairs or upgrades before selling.
2. No realtor commissions to pay which can save you thousands.
3. They can close the sale much faster than a traditional sale which is great if you need to sell fast.

This is especially helpful if you’re in a unique selling situation. Maybe you need to move for a job or inherit a property you don’t want to keep. In these cases, a cash home buyer can be a quick and easy solution.

If you’re looking for cash home buyers in NYC or need to sell your house fast in Buffalo, Leave the Key Homebuyers can be a good option. They know the local market and can make competitive offers.

Remember when selling your home you have options. Using a realtor might be the right choice for some but it’s not the only way to sell a house. Especially in a changing market having alternatives can be very valuable.

Summary

As we’ve seen, the housing market in 2024 will be stable with some improvement in the 2nd half of the year. House prices won’t go down much but we won’t crash.

If you’re buying or selling a home you need to consider your situation, home values, and the local market conditions. Whether you have taxes to sell a house or need a quick sale there are options for you.

Remember the housing market is complicated and can vary greatly from one area to another. While expert predictions can give us an idea of what to expect it’s always a good idea to research and consider your situation when making housing decisions.