Expert Quotes on the 2024 Housing Market Forecast
Are you considering buying or selling a Kansas City home soon? It's essential to understand what to expect from the 2024 housing market. Throughout 2023, increased mortgage rates, confusion over home price headlines, and a low supply of homes for sale created challenges for Kansas City buyers and sellers. With these variables in mind, many KC residents wonder: What's on the horizon for the new year?
There's good news! Many real estate experts are optimistic the market has turned a corner, and we are headed in a positive direction.
Mortgage Rates Expected To Ease
Kansas City mortgage rates have recently started to decrease, offering hope to buyers struggling with affordability challenges. Mark Fleming, Chief Economist at First American, explains how they may continue to drop:
"Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . ."
Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), says:
"For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market."
The Supply of Homes for Sale May Grow
As mortgage rates ease, activity in the Kansas City housing market should pick up as many previously hesitant buyers and sellers will jump into action. As more sellers list, the supply of homes for sale grows – a trend already emerging this year. Lisa Sturtevant, Chief Economist at Bright MLS, says:
"Supply will loosen up in 2024. Even homeowners who have been characterized as being 'locked in' to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%."
Home Price Growth Should Moderate
The pulling back of Kansas City mortgage rates isn't the only favorable sign for affordability, as home price growth is also expected to moderate. KC inventory will improve in the coming months but remain low overall. As the Home Price Expectation Survey (HPES) from Fannie Mae, a survey of over 100 economists, investment strategists, and housing market analysts, says:
"On average, the panel anticipates home price growth to clock in at 5.9% in 2023, to be followed by slower growth in 2024 and 2025 of 2.4 percent and 2.7 percent, respectively."
To sum it up, experts project that 2024 will be a more promising year for the Kansas City housing market. Are you thinking about making a move next year? Early signs show we're turning a corner. As Mike Simonsen, President and Founder of Altos Research, puts it:
"We're going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume . . . All in all, things are looking up for the U.S. housing market in 2024."
Experts are reassuring about what to expect in the 2024 Kansas City housing market. Are you looking to buy or sell a home in the new year? Partner with the Just Say Home KC Team to ensure you're current on the latest forecasts. These experienced real estate agents will help bring clarity and confidence to your next KC move!