Zillow is forecasting that the housing market will improve slightly in 2024, but affordability will remain a challenge.
Buying a home will remain expensive, keeping pressure on the rental market to cater to families that will be renting for longer than previous generations, the firm says.
Many who buy will turn to homes that need some work, and do-it-yourself upgrades and repairs will keep new homeowners busy, Zillow predicts.
Skylar Olsen, chief economist for Zillow, says there’s “a huge number of households in prime home-buying ages waiting for the winds to turn in their favor.”
“While still presenting challenges, the market will be better for buyers, with more homes to choose from and improved affordability,” Olsen says. “Many will continue to look toward rentals, and given renter demographics single-family rental demand in particular will be strong. Recent deliveries should keep rent growth down, and concessions high in that market, too. This is our breather year.”
More homes will hit the market next year as homeowners accept that current mortgage rates are sticking around, Zillow predicts.
Eventually, people will grow weary of waiting for the historically low mortgage rates of 2021 to return.
Many of those homeowners, the firm says, will have their eye on a home with a bigger backyard, an extra bedroom or in their preferred neighborhood across town.
Interestingly, Zillow is predicting that artificial intelligence (AI) in real estate will make a leap, improving home-buying and selling.
Generative AI made waves this year, and Zillow expects AI advancements to streamline the home-shopping and home-selling journey in 2024, improving the experience of buyers, sellers and their agents.
Photo: Dillon Kydd
