The Realtor.com economics team expects interest rates to average about 6.8 percent in 2024, falling to about 6.5 percent by the end of 2024. In 2023, the average annual interest rate will be 6.9%, and it will be about 7.4% at the end of the year. Therefore, in general, experts predict that interest rates will fall slightly in 2024. If the interest rate is better, there might be five interest rates. If it is bad, it will most likely reach seven heights, but overall, the predicted value will drop.

Then let's look at house prices. Let's talk about the bad news first! Goldman Sachs predicts house prices will continue to rise next year. Taking into account supply and demand, affordability and house prices, Goldman's housing model suggests that house prices, as measured by the Case Shiller House Price Index, will fall 0.8% in December this year. However, with prices up 4.2 per cent this year, it is estimated that this will take prices up 3.4 per cent year-on-year this year.

In addition, Goldman Sachs predicts that home prices will rise again in 2024, but the increase will be much smaller, only 1.3%, as they believe supply remains very tight and interest rates affect affordability. In July, Goldman also expected home prices to rise 1.7 percent in 2024, and the new forecast has been revised down a bit.

Any good news? Of course there is! Existing home sales have fallen to their lowest level in 13 years. Morgan Stanley strategists said in a report released in November that they expect home prices to fall by an average of 3 percent next year, mainly because the number of homes available for sale in the housing market has increased, offsetting the increase in demand.

Glenn, Redfin CEO Kelman also believes that home prices have continued to rise since the beginning of the year, and there is a good chance that home prices will fall next year. Kelman believes the market has been frozen by high interest rates and buyers and sellers can't come to terms. When the affordability of the buyer is reduced to the minimum, the transaction can only be successful if the seller takes the initiative to reduce the price. According to Redfin's real estate market data, more sellers have been cutting prices since November.

Economist Tomic of Boston College in Alexandria sees several other possibilities for lower home prices next year. Federation rate cuts lead to lower interest rates and increased supply; Second, unemployment is rising, companies are slashing jobs, and homeowners are being forced to sell their homes.

In fact, since this year, something else has evolved - the trend back to office work is increasing. As the epidemic in the United States has disappeared, so has the return of traditional office models. Companies are gradually calling workers back to the office, which has forced people who had left the city to return to work. That could force some owners to sell and move.

Charlie Dougherty, senior economist at Wells Fargo, believes the most likely positive way for home prices to fall is "a sharp increase in inventory." However, even if house prices fall, it will not solve buyers' affordability problems today, but it must be paired with lower interest rates and higher wages. Looking at Zillow's forecast, Zillow's home value index will grow 3% in 2023, down from the 3.3% forecast last month. Zillow's forecast for the home price index over the next 12 months, from November 2023 to October 2024, is fairly flat at -0.2%.

However, Zillow's previous forecast, from October 2023 to September 2024, will grow 2.1%. The reason for the downward revision is nothing more than a slowdown in interest rates, an increase in supply and a further fall in inflation.

Generally speaking, there are more experts and organizations that expect housing prices to fall next year. Most of the experts who expect a rise say that inflation is uncertain and housing supply is still very scarce, but overall they expect a very small rise.