2024: The Year of the Homeowner

Interest Rates Drop, Housing Market Surges

The housing market is showing signs of life in 2024, as interest rates drop and more buyers enter the market. According to a recent report by the National Association of Realtors (NAR), existing home sales increased by 2.5% in January compared to December, and the median home price rose by 4.6% to $350,300.

The drop in interest rates is a major factor driving the housing market recovery. In January, the average 30-year fixed mortgage rate fell to 4.5%, down from 5.0% in December. This makes it more affordable for buyers to finance a home, and it is also encouraging homeowners to refinance their mortgages.

The increase in buyer demand is also contributing to the housing market recovery. According to the NAR, the number of homes for sale declined by 1.9% in January compared to December, and the median time on market fell to 47 days. This indicates that there is a shortage of homes for sale, and buyers are competing for the available properties.

The Outlook for 2024

The housing market is expected to continue to improve in 2024. The NAR predicts that existing home sales will increase by 3.1% and the median home price will rise by 3.3%. This growth will be driven by continued low interest rates and strong buyer demand.

However, there are some risks to the housing market recovery. The economy is still fragile, and a recession could cause home sales to decline. Additionally, the supply of homes for sale is still limited, and this could lead to higher prices.

Overall, the housing market is showing signs of improvement in 2024. Interest rates are low, buyer demand is strong, and the economy is recovering. However, there are some risks to the housing market recovery, and buyers should be aware of these risks before making a decision to purchase a home.