My 2024 Predictions

I’ve listened to countless national and local economists over the last month for data-based insights. Below are my key takeaways:

Huge Buyer Demand

• The single largest number of buyers in the history of real estate is coming down the pike. The U.S. stats:
• Household formation begins at age 26
• The first-time homebuyer is 35 years old
• Currently, 45 million people are between the ages of 26-35, which is the largest number of people in this age block in U.S. history
• This has caused increased pressure on rent prices, and it helps explains why so many people are circling to buy a home

Growing Desire for Sellers to Move

Life continued to change post-COVID, even if you had locked in a great mortgage rate. The stats post-COVID:

• 50 million job switches
• 7 million new babies
• 3 million new marriages
• 1.5 million divorces
• 7 million turning 65 and want to trade down

Just a modest rate drop will motivate these homeowners to finally move.

Rates Will Drop This Year

Inflation is finally dropping and normalizing. The Federal Reserve has said they will reduce rates at least three times in 2024. Here are the current rate projections:

• 2024 - Q1: 6.9%, Q2: 6.8%, Q3: 6.3%, Q4: 5.9% *Source: Fannie Mae
• By 2025, rates will be in the mid-5% *Source: Brian Buffini