What 2024 holds for Washington real estate
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DMV housing experts predict the market will be less stagnant — but not wildly different — in 2024.
Why it matters: Many homeowners and wannabe buyers stood still in 2023, waiting for rates to drop before they made a move.
What they're saying: More listings will hit the market next year, "bringing some options to prospective buyers," says Lisa Sturtevant, chief economist at Bright MLS.
Yes, but: Experts agree inventory will continue to be an issue. First-time buyers will especially be challenged by affordability and "will continue to lose out to cash buyers," DMV agent Russell Brazil says.
Zoom out: If the economy is steady, rates could land around 6%. If the economy stumbles, mortgage rates could fall more significantly, says Greg McBride, Bankrate's chief financial analyst.
- No one can say with certainty just how much mortgage rates will change because they are impacted by inflation and the Federal Reserve.
Between the lines: Lower mortgage rates won't clear all buyer hurdles, and actually could push home prices higher if demand surges and inventory remains low.
But, but, but: "People still have the dream of homeownership and they can't wait around forever," D.C. agent Maxwell Rabin says.
- He expects some buyers will hop off the sidelines next year.
- "I try to encourage buyers to focus on what they need, and what they can afford," Opendoor's Merav Bloch tells Axios.
What we're watching: How the NAR verdict changes real estate agents' commission and conversations in the industry.
Bottom line: Experts predict more listings will hit the market in 2024, but demand and competition will be fierce.