Detroit and Austin: Opposite Sides of the US Housing Market in 2024
As we look ahead to 2024, Detroit and Austin, Texas, are predicted to represent two opposite ends of the US housing market. According to Realtor.com’s 2024 housing forecast, Detroit is expected to top the list for property price appreciation, while Austin is projected to rank last.
Detroit’s Property Prices on the Rise
In 2024, property prices in Detroit are projected to increase by 10.9% compared to this year, outpacing the other 99 major metro areas included in the ranking. The Motor City’s robust housing market is being underpinned by the relative value on offer and the transition to electric cars drawing in transplants from other major cities to work at the many automakers headquartered there.
Austin’s Property Market Cooling Down
On the other hand, Austin, which is another electric vehicle hotspot and home to Tesla, is expected to see prices fall by 12.2% over the same period. The Texas city’s property values have been cooling for some time.
2024: An “Affordability Turnaround” for the US Housing Market
Outside of Detroit and Austin, 2024 is expected to bring an “affordability turnaround” to the US housing market, helped by lower mortgage rates and easing prices. “Our 2024 housing forecast reveals the green shoots we’ve been waiting to see in the housing market and should give buyers some optimism after a grueling few years,” said Danielle Hale, chief economist for Realtor.com.
Home Prices and Mortgage Rates Expected to Ease
Home prices nationwide are anticipated to ease slightly and drop by 1.7%, after generally being on an upswing since 2012. Additionally, mortgage rates are expected to ease throughout 2024, with the average mortgage rate forecasted to be 6.8% and rates edging down to reach 6.5% by the end of the year.
Home Sales Driven by “Moves of Necessity”
According to Hale, so-called “moves of necessity,” spurred by life events such as career changes or growing families, are likely to drive home sales next year. “Home buyers will continue to seek out markets where they feel like they get the most out of their dollar as they look for homes that better meet their needs,” she said.
Orginal article: Link To Article – provided by Kansas City Realtors