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Housing market outlook for 2024 – Wharton Professor Susan Wachter #housingmarket

December 27, 2023 / 01:00

This episode discusses predictions for the housing market in 2024, focusing on interest rates, inflation, and the potential recovery for buyers.

The speaker predicts that the first half of 2024 will continue the challenges faced in 2023, but recovery may begin in the second half. They mention that inflation has decreased to 2.5%, which is close to the Federal Reserve's target.

As inflation decreases, mortgage rates are expected to fall from around 7% to possibly 5%. This change could lead to an increase in housing supply.

The speaker highlights the struggles of Millennials and Generation Z in the housing market, expressing optimism that conditions may improve by 2025, allowing these groups better opportunities to purchase homes.

TLDR

Housing market predictions for 2024 suggest challenges early on but recovery by 2025 due to falling interest rates and inflation.

Episode

1:00
00:00:00
my prediction for the housing market for 2024 is a continuation of the difficulties of 2023 for the first half
00:00:07
of the year but by the second half I think we'll start seeing recovery stay alive to 2025 because we see some really
00:00:13
positive Trends in interest rates moving down because inflation is down inflation
00:00:17
is down over the last 6 months to a 2.5% rate which is close to the fed's goal
00:00:22
with recession that should come down further giving us significant relief on the side of the mortgage market and at
00:00:27
the same time that mortgage rates fall from 7 % range to perhaps as low as 5% we will see that Supply will in fact
00:00:36
increase as well so difficult year ahead but by 2025 markets could be considerably healthier for buyers who
00:00:44
are been shut out of owner occupancy and we look forward to that opportunity for
00:00:50
Millennials Generation Z to get into that home that they've been struggling to buy over the last several
00:00:58
years

Episode Highlights

  • Housing Market Predictions for 2024
    The housing market will face challenges in 2023, but recovery is expected by 2025.
    “Difficult year ahead, but recovery is on the horizon.”
    @ 00m 08s
    December 27, 2023

Episode Quotes

  • Difficult year ahead, but recovery is on the horizon.
    Housing market outlook for 2024 – Wharton Professor Susan Wachter #housingmarket
  • Millennials and Generation Z will finally get their chance.
    Housing market outlook for 2024 – Wharton Professor Susan Wachter #housingmarket

Key Moments

  • Market Recovery00:08
  • Interest Rates Down00:13
  • Opportunities for Millennials00:47