Here’s what to expect from the housing market in the second half of 2024

on Jun10
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Redfin CEO: Housing market will do a little bit better through the rest of the year

Experts are torn about where exactly the housing market is headed in the latter half of the year.

“Mostly, we think the housing market is going to improve over the next half of the year,” Glenn Kelman, chief executive of Redfin, a real estate brokerage site, said on a May 22 appearance on CNBC’s “Money Movers.”

“We’ve hit rock bottom in the first quarter of 2024 and I would expect the housing market to do a little bit better,” Kelman said.

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Other experts are less sure about the market’s prospects for improvement.

“It’s a very strange market, and it’s kind of hard to predict,” said Jeff Ostrowski, a housing analyst at Bankrate.com.

Here are some of what Ostrowski, Kelman and other real estate experts say could shape the real estate market in the second half of 2024:

More homes are coming on the market

Simonskafar | E+ | Getty Images

‘Some movement’ on interest rates

The 30-year fixed rate mortgage slid 6.99% on June 6 after climbing 7.22% on May 20, according to Freddie Mac data via the Federal Reserve.

“Mortgage rates are down a bit from May highs, but that hasn’t spurred a surge of competition among buyers in the housing market,” Divounguy said.

Affordability remains a top priority for buyers and rates stayed above 7% for long.

Many experts believe the Federal Reserve will likely hold interest rates in the upcoming board meeting on June 12. However, the National Association of Realtors forecast a potential interest rate cut by the fall of this year, according to Jessica Lautz, the NAR’s deputy chief economist.

By late September, “perhaps we will start seeing movement on the Fed funds rate,” she said. “That’s at least what our hope is.”

While mortgage rates are forecasted to come down to 6.5% in the fourth quarter, homebuyers may not see much relief given rising home prices amid limited housing inventory, noted Lautz.

“It’s very possible that they’re ending up paying the same mortgage payment because they’re purchasing a home that while has a lower interest rate, has a higher price point,” she said.

‘It’s hard to foresee prices really cooling’

While the housing market has slowed in terms of the number of transactions, prices haven’t soften despite broader expectations, Ostrowski explained.

The median home sale price across the U.S. increased to $392,200, a 4.4% jump from a year earlier, according to Redfin.

“It’s hard to foresee prices really cooling or declining nationally,” said Ostrowski. “It seems likely we’re going to see another record high for home prices this summer.”



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