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Housing market expert Logan Mohtashami of Housing Wire made some surprising predictions for 2024, including a sustained market health, an increase in days on market, but with a return of first-time homebuyers.

Home price growth could slow or even decline

One of the biggest surprises is the possibility of a decline in home prices in 2024. This is in stark contrast to the double-digit price growth that has been seen in recent years.

There are a few factors that could contribute to a slowdown or decline in home prices. First, the Federal Reserve is raising interest rates in an effort to combat inflation. This is making it more expensive to borrow money, which could cool demand for housing.

Second, the housing market has already seen a significant run-up in prices. This means that there is less room for further appreciation.

Finally, the economy could slow in 2024, which would also dampen demand for housing.

Days on market could increase

Another surprising prediction is that the average number of days that a home is on the market could increase in 2024. This is because buyers are likely to be more cautious in the face of higher interest rates and a potential economic slowdown.

Buyers may also be taking more time to find the right home, given that there is more supply on the market than there has been in recent years.

First-time homebuyers could return to the market

First-time homebuyers have been largely sidelined from the housing market in recent years due to high prices and low inventory. However, experts predict that they could return to the market in 2024.

This is because millennials are now the largest generation in the US workforce, and they are starting to reach the age where they are ready to buy a home. Additionally, the Federal Reserve is expected to continue to support the housing market through its policies, which could make it easier for first-time homebuyers to qualify for a mortgage.

Other surprise predictions

Here are a few other surprise predictions from housing market experts for 2024:

1. More people will move to smaller cities and towns. This is due to the rising cost of living in major metropolitan areas, as well as the increasing flexibility of remote work.

2. The popularity of short-term rentals will continue to grow. This is due to the rise of the sharing economy and the increasing demand for flexible housing options.

3. There will be a growing demand for multifamily housing. This is due to the aging population, the increasing number of single-person households, and the rising cost of single-family homes.

It is important to note that these are just predictions, and it is impossible to say for sure what will happen to the housing market in 2024. However, these predictions provide some insights into what to expect in the coming year.

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