Here’s What the 2024 Housing Market Has in Store—And What Homebuyers Can Actually Do About It

Ah, the fresh scent of a brand new year… and with it comes yet another round of hopeful sighs (and maybe a few groans) from anyone dreaming of ditching their landlord in exchange for those coveted house keys. After a year when simply “window shopping” Zillow listings could trigger a mild existential crisis, you might wonder: could 2024 finally crack open the door to homeownership, or are we just along for another rollercoaster ride?

Well, according to the latest housing market forecast from Realtor.com, the year ahead could have a little glimmer for buyers and renters who’ve been benched by last year’s sky-high mortgage rates and “blink-and-it’s-gone” home prices. Don’t get too giddy—no one’s promising an instant, magical cure for home affordability—but small, meaningful steps? Those could finally become reality.

If you’re a renter, good news is simmering too. Developers have been busy, and a healthy batch of new homes and apartments might just make your search less torturous—and slightly less like The Hunger Games.

WHAT WILL THE HOUSING MARKET LOOK LIKE IN 2024?

Let’s not sugarcoat it: 2023 was rough on homebuyers. Thanks to inflation sticking around like an unwanted houseguest, mortgage rates soared, and so did home prices, pricing out all but the most determined (or most fortunate) buyers. Existing homeowners clung to their low-rate mortgages for dear life—understandably, given the alternative was much higher bills. A market slowdown? More like a housing traffic jam.

But before you start doomsurfing again, here’s a breadcrumb of hope: as inflation slowly backs down, experts expect mortgage rates to edge down with it. Realtor.com’s crystal ball sees average rates sailing around 6.8% for 2024, perhaps dipping as low as 6.5% by next December. If you’re nostalgic, remember rates averaged about 4% from 2013–2019—so while it’s not quite a party, it beats last year’s whopping 7.79%.

On the home price front? Don’t expect a bargain bonanza, but there’s a nudge in a better direction: monthly payments on a median-priced home could drop from $2,240 down to around $2,200. Still, that’s about 35% of the average American household’s income, which, let’s be honest, is nothing to sneeze at. Low inventory is still the big old elephant sitting in the living room—folks just aren’t eager to sell and give up those sweet sub-4% rates.

Danielle Hale, Realtor.com’s chief economist, sums it up: “Moves of necessity—new jobs, family changes, downsizing to cheaper markets—those are going to drive most home sales next year.” So unless you’re itching for a life change, you’re probably not moving for funsies.

Bottom line: prices may inch down and rates might loosen their grip, but don’t expect a full-on pre-pandemic flashback. (If inflation pulls a surprise comeback, brace yourself for more market mood swings.) Still, 2024 could finally feel a little less like climbing Everest in flip-flops—for both buyers and renters.

Speaking of renting, here’s some actual sunshine: a ton of new residential properties will hit the market this year, giving renters more choices and a rare upper hand. But because buying remains pricier than renting (no shock there), expect the rental field to stay competitive. Rents? Realtor.com predicts they’ll chill out, possibly dipping by a barely-there 0.2%—hey, at least it’s not another spike.

WHAT CAN HELP HOMEBUYERS IN 2024?

Alright, it’s not all sunshine and rainbows—housing affordability still feels like a cruel joke in many places. But, if you’re determined (and maybe a bit stubborn like me), you’ve got some options. For starters, those free online mortgage calculators? Absolutely clutch. They let you fiddle with down payments, loan types, and rates to see just how painful—that is, “how manageable”—your future monthly payment might be.

Don’t settle for the first mortgage offer that shows up in your inbox; mortgage lenders are not all created equal. Shop around, haggle (politely), and look for those rare unicorns offering better rates or more flexible terms. Remember: a small percentage difference now could save you thousands down the road. Trust me, your future self will thank you.

Worried about that down payment? You’re not alone—this year, the average hit $30,000 (insert spit-take here). But don’t despair: more than 2,000 down payment assistance (DPA) programs are scattered across the country, aimed at shooing you onto the property ladder. Many are laser-focused on first-time buyers, with some tailored for your city, county, or even your favorite zip code.

The trick? Do your homework. Dig up which DPAs are in your target area, and always, always ask lenders about eligibility. Their in-house housing counselor can be your new best friend, guiding you to the help you actually qualify for—no wild goose chase required.

MORE FROM MONEY:

• How Much Equity Can I Borrow From My Home?
• How Much House Can You Afford? Many Buyers Are Ignoring a Classic Rule of Thumb
• Home Sales Rise as More Sellers Cut Prices and Grant Concessions to Buyers

So, there you have it. Arm yourself with knowledge, leverage every tool you can find, and keep a sharp eye on those unpredictable market twists. Whether you’re buying, selling, or devising new ways to survive the rental games, 2024 just might be the year you make your move—and do it wisely.