What Will the 2024 Spring Homebuying Season Look Like?

"Housing affordability remains a significant concern, with high home prices and mortgage rates posing challenges for buyers. The ongoing shortage of housing supply, coupled with robust demand, is expected to sustain high home prices this season. And mortgage rates are expected to play a pivotal role in the spring market, too. The recent decline in mortgage rates is anticipated to incentivize buyer activity this spring, and the Federal Reserve's indication of potential rate cuts in 2024 adds further encouragement. Political factors, including government policies and the upcoming elections, are also likely to affect the housing market."

"The Fed's actions have caused mortgage rates to soar, making affordability a problem for buyers and making it economically impossible for many homeowners to sell their homes and buy a new one with a mortgage rate twice as high as their current loan. So even though we are likely to see a slight seasonal uptick in property listings, we are not likely to see much more than a modest year-over-year increase in existing home sales. We're locked into a cycle with limited supply, pent-up demand, high financing costs, and poor affordability."

"If we step back and look at this from a 30,000-foot perspective, we have a basic supply and demand issue, as there are significantly more people who need homes than inventory can support. Additionally, new builds are not projected to keep up with the incoming population. Inflation trends will be the key driver this spring, which will directly impact mortgage rates. Higher inflation — and subsequently higher mortgage rates — could cause a slowdown of buyers, with inventory creeping up slightly."

"The spring market is likely to be driven by a mix of lingering economic recovery signals, environmental considerations, and the political climate. Economic factors such as inflation rates, employment figures, and consumer spending will play critical roles as well. Overall, I predict a season characterized by cautious optimism among buyers, with a keen eye on value and sustainability."

"I don't believe there will be a significant decline in home prices throughout the United States this spring. It will be dependent on specific regions, whereas there is still tremendous demand in certain areas and less demand in others."

"Housing prices may start creeping a bit lower this spring, but they aren't going to drop so far that they change the fundamental dynamic. Homes, especially starter properties, will remain unaffordable, especially to first-time buyers."

"I believe home prices will rise by 2% this spring, given the imbalances in supply and demand. The prevailing sentiment seems to be that, while prices will continue to rise, the pace of appreciation will slow down. The National Association of Realtors predicts a 1.4% increase in median prices, while Fannie Mae's forecast estimates an average home price growth of 3.8% across 2024."

"I expect to see home prices rise over the next few months. There are simply more buyers that need and want housing than there are homes available for sale. We are seeing real-time reports of open houses with 50 to 100 people attending and multiple offers. It remains an absolute feeding frenzy in markets with low levels of inventory."

"On a national basis, home prices are probably going to continue to increase in the 2024 spring buying season for two reasons. First, prices almost always peak during the spring and summer months, and this year isn't likely to be any different. Second, demand also tends to peak during this period and is expected to overwhelm the limited supply of homes available for sale."

"Rates will likely trend down over the next 12 months, but expect some volatility. Mortgage rates have historically moved in tandem and track with inflation. Each time interest rates have dropped by 1%, roughly five million additional people have been able to afford a home that previously could not qualify. So if rates drop from the current territory of about 6.75% to 5.75%, I expect we will have approximately five million more people who can purchase a home this spring."

"Mortgage rates should trend lower this season, with the rumor of the Federal Reserve decreasing the rate twice this year. While we won't see mortgage rates drop to the 2% to 3% range anytime soon, we will see some relief in the spring to summer 2024 homebuying season."

"I foresee modest declines in mortgage rates, with the 30-year mortgage rate averaging 6.9% this spring. What will drive rate declines is not so much the current interest rate climate but the expectation for future declines in interest rates based on the Fed's data-dependent analysis."

"Mortgage rates are expected to fluctuate this season. Should the Fed decide to cut rates to stimulate the economy, we could see a temporary dip, making the spring buying season more attractive. However, buyers should remain vigilant, as rates are subject to rapid changes based on broader economic signals."

"Presently, there is a significant demand for residential property driven by younger generations like Millennials and Generation Z, who dominate the market and account for 50% of the current workforce. However, despite a tremendous number of buyers, insufficient inventory remains a challenge. There probably won't be much change over the next three months unless there is interest rate assistance from the government."

"I anticipate a slight rise in inventory in the short term. As rates get noticeably lower and into the 5% range, this supply trend will change, as another wave of buyers will enter the market and we will see inventory start to drop."

"Inventory levels are anticipated to slightly increase in certain areas, driven by new construction and sellers entering the market to capitalize on stable prices. However, overall supply will likely remain tight, continuing the trend of a seller's market in many areas."

"Inventory will remain too low to meet demand, especially in pricey urban and suburban markets, although some new construction — especially of apartments — may take the edge off."

"Supply is likely to increase during the spring, coming off near-record lows from a year ago. Even with this seasonal increase, we may still have somewhere between 30% and 40% fewer homes available for sale than we did before the pandemic. On the other hand, we should continue to see an increase in the number of new homes for sale, as January building permits increased by 8.6% from January 2023."

"Shoppers can adapt several unique strategies to enhance their chances of securing a desired home. Explore off-market properties, leverage technology for virtual tours and faster decision-making, and consider alternative financing options. Engaging with a real estate professional who has a deep understanding of specific local markets can also provide a competitive edge. Above all, remain adaptable, informed, and ready to act decisively."

"I suggest 10 ways that can help buyers get an offer accepted this spring. First, get fully approved for a mortgage before you make an offer. Second, work with a reputable real estate agent. Third, make an offer above the asking price. Fourth, be flexible with the closing date. Fifth, limit or waive any contingencies in your offer. Sixth, use an escalation clause in your offer. Seventh, offer to cover certain seller expenses. Eight, increase your earnest money deposit. Ninth, offer a $10,000 performance guarantee. And tenth, have your lender or agent send a personal video or letter from you to the seller to stand out from other buyers."

"If there's a home you are really after, you need to be prepared to make an offer over the asking price or, better yet, a cash offer."