On The Market

174: Zillow and Redfin Top Economists Give Their 2024 Housing Market Predictions

Jan 3, 2024

Learn from top economists at Zillow and Redfin about their predictions for the 2024 housing market. Topics discussed include home prices, affordability correction, mortgage rate forecasts, impact of student loans and credit card delinquencies, risky and affordable markets to watch, and the potential post-pandemic boom.

51:03

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Quick takeaways

Buyers can expect improved affordability in 2024 with lower mortgage rates and softening prices.

The US consumer is in good shape, with improved income growth and a strong labor market, despite some credit card delinquencies and the resumption of student loan payments.

Investors should exercise caution in real estate markets with oversupply of homes, such as Austin, Texas, where significant price corrections may occur.

Deep dives

Outlook for the Housing Market in 2024

The senior economists predict an improved picture for buyers in 2024 with better affordability due to expected rate cuts and softening prices. They anticipate rates to be lower, possibly in the low sixes by the end of the year. The increase in new listings and the presence of demographic tailwinds suggest a positive outlook for the housing market. However, caution is advised in markets where there is an oversupply of homes, such as Austin, Texas, which has seen significant price declines.

Introduction

2min

Macroeconomic Outlook and Uncertainty for 2024

4min

Housing Market Forecasts and Challenges for Investors

2min

State of the Average American Consumer and Predictions for the Housing Market

14min

Impact of life events on the housing market and predictions for 2024

4min

Housing Demand and Supply in 2024

21min

A Surprisingly Harmonious Conversation with Representatives from Zillow and Redfin

2min

Promotion of a Free 2024 State of Real Estate Investing Report

2min

With doomsday headlines and lagging consumer confidence, how should you proceed in 2024? Time to get the advice of TWO senior economists! BiggerPockets’ Dave Meyer talks with ZILLOW’s Orphe Divounguy and REDFIN’s Chen Zhao to demystify the latest US economic indicators and provide you with strategies to thrive in this year’s housing market.

We’ll get into home prices, the incoming “affordability correction,” mortgage rate forecasts, and why next year could be significantly better for buyers. But that’s not all. Both Chen and Orphe share their outlook for the 2024 economy, the state of the American consumer, and what could happen as student loans kick back in, credit card delinquencies increase, and cash reserves run dry.

Finally, we’ll end things with Chen and Orphe’s list of real estate markets to watch and the pricey areas that may see a revitalized post-pandemic boom. If you want to know what to expect, where to invest, and if the hot housing market will return in 2024, stick around!

In This Episode We Cover:

Redfin and Zillow’s 2024 housing market predictions

The “weakening” American consumer and what this means for homebuying

2024 mortgage rates, “disinflation,” and where we could end up next December

The “affordability correction” that could help home buyers get their first house

Riskiest real estate markets in America that could see HUGE price cuts

Affordable markets to watch that have had rock-solid home prices

And So Much More!

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