Looking at the complexities of the 2024 housing market, many are curious about what lies ahead. To anticipate the future, let’s take a quick journey through recent years to understand the market dynamics and predict potential trends.

In 2021, low interest rates fueled a surge in homebuyers, resulting in intense bidding wars and a remarkable six million home sales nationwide. However, as we entered 2022, inflation and rising interest rates began to impact buyer confidence. The second half of the year saw some moderation in prices, contrary to experts’ predictions of declining rates.

Despite expectations, interest rates continued to climb in 2023, reaching peaks of seven and a half to 8%. This led to a significant decline in home sales as hesitant sellers clung to their properties acquired at lower interest rates. The year concluded with only four million home sales nationwide, setting the stage for the beginning of 2024.

“With interest rates showing signs of stabilization, the year holds promise for both buyers and sellers alike.”

Now, there is a glimmer of hope. Interest rates are gradually receding, providing relief to the housing market. A recent conversation with a lender revealed a 30-year fixed average of 6.12%, a noteworthy decrease from just a month ago.

With the downward trend in interest rates, we are noting an increase in pre-approval applications, which points towards a more favorable housing market. Although it may not reach the peaks of 2021, if rates stabilize in the low sixes or dip into the fives, we can expect heightened buyer confidence, intensified bidding wars, and a surge in property prices. This positive momentum positions us well for a promising outlook as we head into 2025.

To gain deeper insights into how these market dynamics might affect your plans to buy or sell a home in 2024, consider reaching out for a consultation. Our team is ready to answer your calls and emails to discuss strategies and ensure that you are well-positioned for the best possible outcome. We look forward to assisting you on your real estate journey.

Want to work with us? Here are some ways to get involved.

  • Looking for a Home in the Cambridge, Somerville, or Greater Boston Area? Search the entire MLS for your home. Search the MLS

  • Schedule a Meeting. Let us earn your business with our exemplary service and extensive local knowledge. Book a Call

  • Subscribe Now to get our latest insights and tips to sell or buy a house. Latest Housing Market Insights

What’s Your Cambridge, Somerville, or Greater Boston Home Worth? Thinking of selling your home or want to learn about home prices in your area? Let me help! Discover Market Value

Watch More