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As we move into 2024, it’s a good time to reflect on the rollercoaster ride of the 2023 housing market. After navigating its highs and lows, many are looking towards 2024 with cautious optimism. If you’re planning to buy, sell, or refinance, understanding the upcoming trends is crucial.

Let’s dive into what the 2024 housing market might have in store and how these shifts could impact borrowers like you.


Searching for Trends in the 2024 Housing Market

The forecast for 2024 is nuanced. While we’re not expecting a repeat of the real estate market from 2023, several factors suggest we might be moving towards a more balanced or consumer-friendly market.

Interest Rates on the Move: Recent trends in the economy signal a gradual decrease in mortgage rates, opening new possibilities for prospective buyers. A period of lower rates means potentially reduced borrowing costs, which could lower your monthly payments and overall loan costs. While the future of rate trends is rarely certain, the current scenario offers a unique opportunity for homebuyers, especially those considering entering the housing market for the first time or refinancing an existing home loan. It’s a good time to reassess your plans in light of these changes and consider your plans for achieving your long-term financial goals.

Home Prices: While the median sale price has risen, real estate is highly localized, and prices vary by region. Some areas are expected to see continuous price climbs, while others might stabilize. Understanding local market dynamics is crucial, and consulting with real estate professionals local to your area can help you with your plans for homebuying.

Housing Inventory: A key factor in market stability is housing inventory. “Everyone seems to agree there is a housing shortage,” writes Josh Zumbrum of The Wall Street Journal. Though housing inventory may remain short going into 2024, there are signs of improvement as demand swells, inflation abates, and developers and builders begin to take advantage of a market that may currently be in their favor. A balance between buyer and seller interests is crucial for a stable market. Pay attention to how any new housing impacts housing prices in the area you hope to buy a home.


Navigating the Housing Market as a Buyer or Seller

2024 presents unique challenges and opportunities for both buyers and sellers:

Buyers: Any movement in interest rates is bound to get buyers excited. Remember your interest rate will not be the only factor in homebuying. Ask your loan officer how you can keep your costs down–both at the time of closing, and as you make your monthly mortgage payment. Being financially prepared, from improving your credit score to saving for a higher down payment, can put you in an advantageous position as a buyer. Reach out to our trusted team today to get started on a home loan pre-approval, or just a consultation with a member of our team to go over your unique situation.

Sellers: The right time to sell is when you’re ready. Understanding the dynamics of your local market and working with experienced real estate agents is crucial. Home valuation and necessary repairs may significantly impact your selling experience.


2024’s Housing Market Highlights

Expect a market that requires strategic thinking and informed decision-making. While it won’t be a dramatic departure from 2023, at least at the start, there may be subtle shifts in interest rates, home prices, and inventory that may make your experience as a borrower different than last year.

Refinancing: As interest rates change in response to fiscal policy and other factors, refinancing may be a savvy financial move for you and your family and can help you with your overall financial plans by potentially lowering monthly payments, changing loan terms, or giving you cash for the equity you’ve built up in the home.

First-Time Homebuyers: The market still poses challenges, but more opportunities are opening up all the time. Explore various mortgage products and assistance programs intended for first-time buyers. You should also consider scheduling a consultation to understand which options fit your first-time buying needs.


2024 Housing Market Predictions

Navigating the 2024 housing market means staying informed and working with experienced professionals to strategically leverage existing opportunities. At The Federal Savings Bank, we’re dedicated to helping you understand market trends and find your right path forward in the homeownership journey.

Whether you’re considering buying a new home, selling, or refinancing, don’t navigate the complexities of the 2024 housing market alone. Reach out to us at The Federal Savings Bank for guidance and support structured for your homeownership goals. Contact us or apply now to start your journey with a trusted lender by your side.


Subject to credit approval. Terms and conditions may apply. Property insurance is required on all loans secured by property.

Down payment assistance requirements are based on the mortgage insurer or guarantor’s guidelines. Borrower may fund down payment and closing costs.  Down Payment Assistance Program, which assist eligible homebuyers with purchasing a home. Down payment assistance programs are not eligible for all potential homebuyers.

This article is intended for general informational and educational purposes only and should not be construed as financial or tax advice. For more information on financial planning or investment advice, consult a registered investment advisor or financial planner. For tax advice, please consult a tax professional.

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.