If you're thinking about buying or selling a home soon, you probably want to know what you can expect from the housing market in 2024. In 2023, higher mortgage rates, confusion over home price headlines, and a lack of homes for sale created some challenges for buyers and sellers looking to make a move. But what's on the horizon for the new year?

The good news is, it appears we've turned a corner and are headed in a positive direction.

Mortgage Rates Expected to Ease

Recently, mortgage rates have started to come back down. This has offered hope to buyers dealing with affordability challenges. 

For home buyers who are taking on a mortgage to purchase a home and have been wary of the autumn rise in mortgage rates, the market is turning more favorable, and there should be optimism entering 2024 for a better market.

The Supply of Homes for Sale May Grow

We've already seen a small increase in days on market as a result of higher interest rates, and as rates ease, sales activity in Omaha should pick up because more buyers and sellers who had been holding off will jump back into action. If more sellers list, the supply of homes for sale will grow – a trend we've already started to see in Omaha this year.

Even homeowners who have been characterized as being "locked in" to low rates will increasingly find that changing family and financial circumstances will lead to more moves and more new listings over the course of the year, particularly as rates move closer to 6.5%."

Home Price Growth Should Moderate

And mortgage rates pulling back isn't the only positive sign for affordability. Home price growth is expected to moderate too, as inventory improves but it still low overall. The increase in days on market for higher priced houses has helped slow the sharp increase we saw over the past few years.

Bottom Line

Experts are optimistic about what 2024 holds for the housing market. If you're looking to buy or sell a home in the new year, let's connect to make sure you're up to date on the latest Omaha forecast.