The U.S. housing market in 2024 is expected to show signs of improvement compared to the previous year, with a focus on affordability and supply challenges. Key points from the analysis include:
- Mortgage rates are expected to decline further in 2024, potentially making homeownership more accessible.
- Home prices are projected to rise at a steady pace, with a 2.9% increase forecasted by Comerica Bank.
- Housing inventory remains low, particularly for entry-level homes, which continues to drive demand.
- Homebuilder sentiment is trending upwards, with the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI) rising from 44 to 48 in February.
- New single-family building permits have increased slightly, with a 1.8% rise in January 2024.
- Consumer outlook on home affordability remains cautiously optimistic, with 17% of consumers signaling in December 2023 that now is a good time to purchase a home.
- The housing market remains resilient, with many homeowners locked in at low mortgage rates and unwilling to sell due to high home prices.
- The housing market in January 2024 experienced a 5.2% year-over-year increase in home prices, with a median price of $402,343.
- The number of homes sold rose 1.8% year over year, while the number of homes for sale fell 3.7%.
- The housing market remains somewhat frozen due to the large share of existing owners with mortgages well below the current rates.
- The hottest housing markets in 2024 are located in Colorado, North Carolina, Florida, and Texas, with Denver, Raleigh, and Durham, North Carolina, being among the top five.
- Overall, the U.S. housing market in 2024 is expected to show signs of improvement, with a focus on affordability and supply challenges. However, the market is still facing challenges due to low inventory and high home prices.
