As we wrap up the year, it’s time to reflect on how 2024’s housing market predictions have unfolded. From inventory levels to mortgage rates, here’s a recap of what experts anticipated and how the market has actually played out.

Housing Shortages Persist

One prediction for 2024 was that housing shortages would continue, keeping inventory tight and demand high. That has certainly been the case, with months’ supply of inventory hovering around 2-2.3 in our market. For context, a balanced market typically requires 4-6 months of inventory, so we’re still in a strong seller’s market. Whether inventory levels shift in the coming months remains to be seen.

Home Price Growth Surpasses Expectations

Stable home prices were forecasted for 2024, with the National Association of Realtors projecting a modest 1.4% increase in single-family home prices. However, we’ve seen an average rise of 3.4% in home sale prices through October. This growth reflects a stable and resilient market, which is good news for homeowners looking to sell.

Mortgage Rates Meet Expectations

Mortgage rates were predicted to close out 2024 at around 6.5%. Current rates are in line with these predictions, ranging from 6.5% to 7%, depending on the lender. Some buyers are securing rates in the low 6% range for 30-year loans. If rates trend downward, we may see increased buyer activity, although affordability remains a key factor.

Buyer and Seller Behavior Adapts

With higher mortgage rates, buyers have become more cautious, while sellers are focusing on competitive pricing and strong home presentation. Days on market have risen slightly to an average of 45, and the ratio of original list price to final sale price has softened a bit. Despite this, overall home sale prices have grown by 4%, showing that demand remains steady.

A Year of Stability

Overall, 2024 has shaped up to be a year of stability in the housing market. While challenges like affordability and low inventory persist, the demand for homeownership remains strong. Buyers and sellers alike are adapting to the new normal, making the most of the opportunities in this market.

If you’re considering buying or selling, Let’s Connect! Together, we can explore your unique situation and help you achieve your real estate goals.