Blog > Housing Market Outlook Brightens for 2024: Increased Inventory and Lower Mortgage Rates Signal a Shift Towards Greater Affordability
Housing Market Outlook Brightens for 2024: Increased Inventory and Lower Mortgage Rates Signal a Shift Towards Greater Affordability
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Despite recent challenges in housing affordability, as reported by Redfin, where only 15.5% of homes were affordable to the average U.S. household in 2023, the outlook for 2024 is promising. Contributing to the earlier scarcity were reduced listings and a spike in mortgage rates, but the landscape is changing. Housing inventory has seen a notable increase of 7.5% year-over-year, suggesting a shift towards a more buyer-friendly market. This increase in supply, coupled with a decline in mortgage rates, which have now stayed below 7% for consecutive weeks, is fostering a more conducive environment for home buying. Freddie Mac's report of returning homebuyers and rising homebuilder confidence, alongside an uptick in new home construction, signals a robust response to the demand for more affordable housing. These developments indicate a positive trend towards greater affordability and accessibility in the U.S. housing market for the upcoming year.
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Valon Nikci
CEO & Principal Broker | License ID: 10991208180
CEO & Principal Broker License ID: 10991208180