Housing Prices Rise More in 2024

Posted on by: Radiant Credit Union

 

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After years of market whiplash, many hoped 2024 would bring relief for homebuyers. But now that we’ve closed the books on the year, we can finally answer the big question: Did housing prices actually drop in 2024?

The short answer? Not really. While home price growth slowed, prices didn’t fall the way many expected. For most buyers, affordability remains a challenge.

 

So, Did Home Prices Actually Drop?

Not exactly. Nationally, home prices increased by about 3.9% in 2024, according to MortgagePoint. This was slower than the double digit gains of previous years but still outpaced income growth and inflation for many households.

 

Why Prices Stayed High

Low Inventory

Homeowners who locked in low rates in 2020 and 2021 had little incentive to sell, keeping inventory scarce. According to Realtor.com, new listings remained well below pre-pandemic levels through the end of the year.

High Mortgage Rates

The average 30-year fixed mortgage hovered around 6.7%, per Freddie Mac, making monthly payments a challenge even for well-qualified buyers.

Lifestyle Changes

Many families stayed put in homes they had customized during the pandemic. With more people working remotely or in hybrid roles, the comfort of being home remains strong.

 

Was It a Buyer’s Market or a Seller’s Market?

Neither. 2024 was largely a balanced but competitive market. Home sales stayed relatively flat year-over-year, according to the National Association of Realtors, and homes that were priced right still saw strong interest. However, affordability continued to be a barrier for many, particularly first-time buyers.
 
 

Signs of Change Ahead

Although 2024 didn’t deliver the price drop many had hoped for, there were hints that the market may shift in 2025:
  • Inflation cooled, prompting speculation about interest rate cuts from the Federal Reserve (U.S. Bureau of Labor Statistics).
  • Savings from pandemic-era stimulus programs began to run out, nudging some homeowners to sell.
  • Adjustable rate mortgages reset, putting financial pressure on a segment of owners.
  • Inventory ticked up modestly, particularly in growing regions of the Southeast and Sun Belt.

 

What This Means for 2025 Buyers

If you held off buying last year, you weren’t alone because 2025 may present new opportunities. Many experts believe that mortgage rates could start easing in the second half of the year, and home price growth is expected to slow even further, according to Fannie Mae’s Economic Outlook.
That said, real estate is hyperlocal. In North Central Florida and other growth markets, demand remains strong, especially among remote workers, retirees, and young families seeking affordability and quality of life.

 

Here's What to Know Moving Forward

Housing market trends tell part of the story, but personal readiness matters just as much. For helpful tips on how to navigate the financial side of homeownership, check out “Mortgage Basics: Your Top Questions Answered.”

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