Housing Market Eyed for Potential 2024 Rebound on Expected Rate Cuts
-
Interest rates are expected to be cut in 2024, potentially lifting pressure off buyers and reinvigorating the housing market. However, high rates will continue to restrain demand in the first half of 2024.
-
Supply is growing but not enough for a wave of distressed sellers. A modest rebound is forecasted in the second half of 2024 if multiple rate cuts materialize.
-
Rental demand has outpaced supply, pushing rents higher. Some relief could come if rate cuts help renters transition to home ownership.
-
Housing affordability hit 41-year lows in 2022 due to high rates and prices. Affordability may start improving with declining rates, but supply constraints persist.
-
Government proposals to improve affordability have promise but 2024 may be the make-or-break year for delivering tangible relief to buyers.