Key Takeaways for Q2 2024 Real Estate Market

The real estate market is gearing up for the spring season, but experts are divided on what to expect in the second quarter of 2024. While traditionally this is a time of increased activity for buyers and sellers, factors such as low inventory and high mortgage rates may impact the market.

Chief economist Selma Hepp anticipates a decline in rates as the season progresses, while Lawrence Yun is optimistic about higher home sales due to job gains and lower mortgage rates. However, Greg McBride is more cautious, citing ongoing low inventory as a limiting factor for market activity.

Mortgage rates are currently holding steady at around 7.0 percent, but experts predict a possible decrease to below 6.5 percent by mid-year. Dennis Shirshikov, however, projects a slight increase in rates, reaching around 7.85 percent by June.

Home prices are expected to increase slightly in the second quarter, with some markets seeing stronger gains than others. Despite an increase in supply, the imbalance between buyers and sellers will likely continue, leading to multiple offers and a seller’s market environment.

For buyers and sellers looking to navigate the current market conditions, experts advise caution and flexibility. Buyers should be vigilant and get preapproved for a mortgage, while sellers may need to be patient and willing to negotiate. Additionally, offering seller-funded rate buydowns can be a creative incentive for potential buyers.

As the real estate market heads into the spring season, it remains to be seen how these trends and predictions will play out in the coming months.