If you're gearing up to dive into the dynamic San Francisco real estate scene in 2024, you're likely eager to uncover the twists and turns that await. After navigating the rollercoaster of 2023, where mortgage rates played hide-and-seek, and the real estate headlines resembled a maze, it's natural to wonder—what's next?
The Silver Lining: Brighter Mortgage Prospects
Thankfully, the outlook seems promising, and several experts are signaling a shift in the winds. Chief Economist at First American, Mark Fleming, brings a glimmer of hope, hinting at a potential drop in mortgage rates:
"Mortgage rates have already retreated from recent peaks near 8 percent and may fall further . . ."
Jessica Lautz from the National Association of Realtors echoes this optimism, especially for those eyeing a mortgage:
"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."
Rising Tide Lifts All Listings: Growing Supply of Homes
As rates ease, the housing market's pulse is expected to quicken. More buyers and sellers, who perhaps lingered on the sidelines, are gearing up for action. Lisa Sturtevant, Chief Economist at Bright MLS, predicts a loosening up of the supply in 2024:
"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%."
Affordability: A Beacon on the Horizon
The good news doesn't end there. Affordability, a persistent concern, is getting a nod of assurance. The Home Price Expectation Survey (HPES) from Fannie Mae foresees a moderation in home price growth:
"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."
In a nutshell, the experts are painting a brighter picture for the housing market in 2024. If you're contemplating a move, early indicators suggest we're on the brink of a positive shift. Mike Simonsen, President and Founder of Altos Research, encapsulates the sentiment:
"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."
In conclusion, 2024 appears to be a year of transition and positivity for the housing market. If you're planning to ride the real estate wave, the signs point towards a smoother journey ahead. As we step into the new year, the housing market landscape is evolving, promising a blend of opportunities and optimism.