In our dynamic housing market, Redfin’s predictions for 2024 offer insightful glimpses into what the future may hold. These seven key forecasts range from a modest decline in home prices to significant changes in the real estate industry and the broader economic implications on presidential politics. What do you think, will these predictions come true?
1. Home Prices Will Fall 1%
Redfin predicts a 1% year-over-year decline in home prices during the second and third quarters of 2024, marking the first significant drop since 2012, aside from a brief period in early 2023.
2. New Listings Will Increase
Supply is expected to rise more than demand, leading to an increase in new listings. This is partly due to homeowners beginning to sell before prices fall further.
3. Home Sales Will Increase by 5%
Home sales are anticipated to rise throughout 2024, with an overall increase of 5% compared to the previous year.
4. Mortgage Rates Will Steadily Decline but Remain Above 6%
Mortgage rates are expected to start around 7% in early 2024 and then gradually decline to about 6.6% by the end of the year.
5. Changes in the Real Estate Industry
The industry will see significant changes, including more negotiation on agent commissions and a trend towards buyers working directly with listing agents.
6. Renting Will Lose Its Stigma
There will be an increased demand for large rental apartments and houses as more young families embrace renting over buying, partly due to high home prices.
7. Biden’s Housing Problem Could Impact His Re-election
The rise in home prices during President Biden’s tenure could be a significant issue in his re-election campaign, with housing affordability being a key concern for many voters.