The decrease in mortgage interest rates will provide homebuyers with more budget flexibility. According to data from Freddie Mac, the average mortgage interest rate has dropped from its peak of 8% to below 7% in recent months, marking the first decline since August. Furthermore, experts predict a gradual further decrease in mortgage interest rates. Lower rates will reduce the cost of homeownership, presenting more opportunities for buyers.

With the addition of new listings, housing inventory is also gradually increasing. This is a positive signal, indicating that buyers will have more options. Nicole Bashor, Senior Economist at the U.S. online real estate company Zillow, notes that as more homes are constructed, buyers should see a larger supply of homes. This is good news for buyers as it becomes easier to find suitable properties.

However, despite the decline in mortgage interest rates, homebuying still faces challenges. Experts point out that lower rates may lead to increased competition among buyers, making it more difficult to purchase suitable properties. Additionally, home prices are expected to remain stable, with only moderate increases. This means that buyers still face challenges in terms of affordability.

According to a report from Zumper, the cost of buying a home this year is 52% higher than renting, marking the largest gap on record. This suggests that high costs are preventing many potential buyers from realizing their homeownership dreams, forcing them to continue renting. Although rental prices have slightly decreased, they remain relatively high.

Experts believe that the rental market in 2024 may undergo some changes. As more young people seek independent living, there may be an increase in demand for housing with convenient commutes. According to data from StreetEasy, a subsidiary of Zillow focusing on the New York City real estate market, demand for rentals in commuting areas is expected to surge, as these areas offer more convenient access to downtown and midtown Manhattan. This indicates that people prefer living in locations close to their workplaces or convenient facilities.