Local Real Estate Market Update – 2024 Predictions

Local Real Estate Market Update – 2024 Predictions

2024 Market Predictions

Continued cooling of mortgage rates in early December means our team is still going non-stop to find success for our sellers, while our buyer agents are getting more clients into new homes.  As we look ahead to 2024, experts are beginning to weigh in with market predictions for mortgage rates, home prices, and inventory.

Mortgage Rates
Most experts are predicting rates (which just dropped below 7%), will land in the 6% range in 2024.

  • Fannie Mae’s forecast suggests that 30-year mortgage rates will range from 7.6% – 7.1%.
  • NAR believes rates will live in the mid- to high-6% range.
  • MBA forecast predicts that 30-year mortgage rates will drop to 6.1% by the end of 2024.

While we aren’t likely to see the incredibly low rates of 2020 and 2021 in the coming year, lowering rates will offer welcome relief to home buyers waiting on the sidelines. HOWEVER, lower rates will also draw more home buyers to the market; more competition could continue to drive up home prices.

Inventory & Prices

Limited inventory has kept home prices elevated, as home prices in the DC Area have risen for 6 straight months, seeing a 5.8% increase YoY in November. Again, if you find the right house now, we recommend working with one of our expert Buyer Agent to determine whether to bid now with potentially less competition, and refinance later if rates come down as predicted.

Bright MLS, where DC area listings are managed, predicts the following for our DC/MD/VA Metro area:

  • Home sales will rise ~11% in 2024 (after declining 24% in 2023 compared to 2022).
  • Median sales price will slightly increase by 1%
  • Inventory will increase 7.5% in 2024

Remember that these predictions are just that — we will closely track the market weekly and monthly to best advise our Buyer and Seller clients on the best strategy for success in 2024. To start the conversation, set up a FREE CONSULTATION TODAY!

Read More
DC Market Data
Mortgage Rate Predictions

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