Rachel Cruze: Housing Market Predictions for 2024

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It’s not easy to predict what the future holds for real estate. After a year like 2023 where mortgage rates hit all-time highs and home prices soared to new heights, many buyers and sellers are wondering where the market is heading next year.

Money expert Rachel Cruze shared some of her housing market predictions in an article on Ramsey Solutions. Here are a few of her educated guesses into the 2024 real estate market.

There Won’t Be a Housing Market Crash

Anyone worried the housing bubble might pop in 2024 should put these concerns to rest as it is not likely to happen. Similarly, Cruze said the growing amount of home sales is indicative of a steady housing market. This means neither buyers nor sellers should be worried about a housing market recession.

In a December Forbes article, Danielle Hale, chief economist at Realtor.com, said something would need to happen to upset the existing housing balance, such as supply suddenly outweighing demand. This seems highly unlikely in 2024.

Mortgage Rates: Will They Go Up or Down?

Predicting whether mortgage rates will go up or down in 2024 is tough. Cruze said rates are not likely to go down by much, if at all.

If mortgage rates do drop, it is likely to be a small decline. Rates just dipped under 7% for the first time since August, and the National Association of Realtors predicts 30-year rates will decline to 6.3% in 2024.

Home Prices Will Continue To Go Up

Buyers hoping for massive drops in home prices should not anticipate this happening anytime soon. 

Cruze cited a statistic from the NAR that predicts existing home prices will be 2.6% higher by August 2024 than they were in 2023.

How To Prepare for the 2024 Real Estate Market

Buyers interested in purchasing homes next year are recommended by Cruze to start getting into good financial shape right now. Cruze does not recommend buying a home in 2024 until you have taken care of the following items:

• You have paid off any debt in full, including credit cards and student loans
• You have created an emergency fund with three to six months’ worth of expenses
• You have prepared a down payment. Ideally, Cruze said, you want to aim for 20% to avoid paying private mortgage insurance (PMI)
• Your monthly house payment is 25% or less of your monthly take-home pay on a 15-year fixed-rate mortgage
• You are able to pay closing costs.

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