On The Market

170: The Hot Housing Market Returns? | Zillow’s 2024 Housing Market Predictions w/Orphe Divounguy

Dec 21, 2023

Orphe Divounguy, Senior Economist at Zillow, discusses Zillow's 2024 housing market predictions including a potential 'big reset' and an economic trifecta that could lead to a hot housing market. They also talk about improving housing inventory, headwinds to watch out for in 2024, and the impact of a presidential election on the property market.

35:28

Creator website

Episode guests

Orphe Divounguy

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

The housing market is expected to experience a reset in 2024 with an increase in inventory and more renters transitioning to homebuyers due to falling mortgage rates and growing consumer wealth.

Affordability will continue to shape migration trends in the housing market in 2024, with more affordable markets attracting people from expensive areas like California and New York, supported by lower housing prices, increased housing options, and ongoing new construction.

Deep dives

Inventory improvements and housing market normalization

The housing market is experiencing a shift as new listings have bottomed out and inventory is expected to increase in 2024. Price growth and rent growth are normalizing, with a decrease in supply constraints. More new construction homes are being built, providing additional inventory. In 2023, the market was characterized by a supply constraint, resulting in strong price growth but a significant decline in the number of homes sold. However, with the improvements in inventory, the market is expected to stabilize and offer more options for buyers in 2024.

Introduction

4min

Economic Predictions for 2023

4min

Low Inventory Levels and Signs of Recovery

5min

The State of the Housing Market and 2024 Predictions

3min

Easing Financial Conditions and Impact on Mortgage Rates

17min

The Current State and Opportunity in the Housing Market

3min

A “reset” could be coming to the housing market in 2024. As mortgage rates fall, inventory rises, and consumer wealth begins to grow, more and more renters are in the position to buy. An economic “trifecta” could form that brings us back into a hot housing market, but will it be anything like 2021 and 2022? We’ve got Orphe Divounguy, Senior Economist at Zillow, back on the show to give Zillow’s 2024 housing market predictions and share where he’s personally looking to invest.

2023 was an impossible year for homebuying. Rates were high, inventory was non-existent, and fears of a recession made Americans have second thoughts about buying real estate. But now, it looks like the Fed will land their so-called “soft landing” as the economy continues to slow but grow at a rate we’ve been waiting for. This is good news for housing.

If you want to hear what Zillow thinks could come next in 2024, what will happen to housing inventory, where Americans will move, and how a presidential election could impact the property market, this is the episode to watch. Be sure to subscribe to On the Market, as Orphe will be back to discuss even more housing market predictions with Redfin’s Chen Zhao.

In This Episode We Cover:

Why the housing market could have a “big reset” in store for 2024

The economic “trifecta” that could put Americans in the perfect position to buy homes

Improving housing inventory and the BIG jumps made towards the end of 2023

2024 headwinds to watch out for and how a presidential election could freeze investing

Affordable markets that Americans are planning to move to in 2024

Where Orphe is looking to buy his next investment property (watch this market!)

And So Much More!

Links from the Show

Find an Agent

Find a Lender

BiggerPockets Forums