What Will the Housing Market Look Like in 2024?

Since the start of 2020, the average housing prices in the US have increased by about 27.5%. In fact, housing experts say that housing prices increased faster between 2020 and 2022 than they did during the housing market bubble of 2005 to 2007.

Thankfully, no major 2008-esque crash has occurred. What experts do expect, though, is the real estate market to experience a slight decline in 2024. Experts say that prices will likely fall, demand will start to decline slightly, and things will start to level off to more pre-pandemic levels.

During this recent increase in housing demand, spike in housing prices, and financially turbulent time, many consumers continued to buy homes, but more individuals looked towards non-traditional lenders. The main reason for this because more Americans were struggling to meet traditional lending requirements as a result of the economic and social conditions.

For example, a record-breaking 60 million Americans freelanced throughout 2022. All freelancing income, or self-employed income, is difficult to prove to traditional lenders who might reject you for a home loan despite you making more than enough to afford the loan. If you’re self-employed, then you might have to seek out a non-QM lender who will work with your unique circumstances.

Another factor that’s impacting the market is that more borrowers experiencing dips in their credit or hits to their credit score when employment was unstable in 2020. While it’s already been several years since that time, the impacts of those financially devastating times continue to impact borrowers.

As a result of these conditions, non-QM lenders have experienced a massive increase in demand for their services. Now that 2023 is coming to a close, though, those same lenders are seeing new buyers starting to fall off. This could be a sign that the housing market is going into correction mode. It could also be a sign that as mortgage rates start to tip downward, more consumers will move towards traditional loans instead of seeking out non-QM loans.

Will You Take Advantage of the Housing Market in 2024?

If the housing market experts are right, then the average home prices should start to become more affordable in 2024. Mortgage rates are beginning to fall, which is better for consumers. Over the past several years, affordability has been a massive concern.

Do you plan on buying a home in 2024? Are you currently experiencing a non-traditional financial situation, or are you afraid that you can’t meet traditional lending requirements? If so, then we can help you learn more about your options for securing a non-QM loan.

Check out our loan requirements now to learn more about how our non-qualified mortgage options can help you make your homeownership dreams a reality even if you have a non-traditional financial situation going on. If you still need additional help, then contact our agents now at (800) 413-0240. Together, we’ll help you come up with a customized mortgage that fits your needs and helps you reach your goals.