Experts’ opinions diverge on the trajectory of the housing market in the latter half of the year. While some anticipate improvement, others remain cautious about its prospects. Real estate analysts highlight several factors that could influence the market in the second half of 2024.
Increased Inventory:
The previous year saw a reluctance among homeowners with low mortgage rates to list their properties due to the potential of financing new homes at higher rates. However, this trend seems to be reversing as more homes are now entering the market. Yet, this surge in supply may not be sufficient to stimulate demand.
Interest Rate Dynamics:
Affordability remains a paramount concern for buyers, particularly with interest rates persisting above 7% for an extended period. While some experts anticipate that the Federal Reserve will maintain interest rates in the upcoming board meeting on June 12, the National Association of Realtors (NAR) predicts a potential rate cut by fall.
Persistent Price Growth:
Despite a slowdown in transaction volume, home prices have remained resilient, defying broader expectations. It is anticipated that another record high for home prices may be witnessed this summer. NAR data indicates that approximately 90% of metropolitan markets experienced home price gains in 2024. Although certain local markets may witness softening price points, the majority continue to observe growth in home prices.