Get ready for a shift in the St. Louis housing market in 2024!

While 2023 was a rollercoaster year, expect calmer waters with promising changes for both buyers and sellers. Here’s a glimpse into what the local scene might hold:

1. Mortgage Rates Cooling Down:

Remember the days of soaring interest rates? Those may be in the rearview mirror. A lot of economists are now predicting rates dipping below 6%, potentially even touching the high 4s! This means more affordable loans and renewed opportunities for homeownership.

2. Home Owners Refinancing:

With lower rates, St. Louis homeowners can refinance their existing mortgages, with both rate-and-term refinances or tapping into equity with a cash-out option. Buckle up for a potential doubling of refinance volume!

3. Mortgage Lock-in Loosening:

The fear of losing a low locked-in rate will loosen its grip. As rates become more attractive, expect to see increased listings and buyer movement. No more golden handcuffs holding back sellers!

4. Inventory Still Tight, But Buyers Emerge:

While a surge in sellers might not happen immediately, expect more motivated ones to enter the market, drawn by lower rates. However, the overall lack of available homes will likely persist.

5. Home Prices: Up or Down?

This is a hot topic! While lower rates might suggest rising prices, some experts predict a slight dip or modest growth in St. Louis. National forecasts range from a 0.2% decrease to a 3% increase, so keep an eye on local trends.

6. Bidding Wars on Hold:

Don’t expect a fierce bidding war revival. Affordability remains a concern, and lower rates won’t magically erase that. The market might become more balanced, with buyers having more room for negotiation.

7. Home Sales: A Gentle Uptick:

With lower rates and more buyers entering the market, expect a slight increase in home sales. However, don’t anticipate a boom; inventory constraints will likely keep things moving cautiously.

8. HELOCs: A Booming Option:

The Fed’s expected rate cuts will directly impact Home Equity Lines of Credit (HELOCs), making them incredibly attractive. This could be a golden opportunity for St. Louis homeowners to access affordable funds for renovations, education, or even a second home purchase.

9. Agent Commissions Under the Microscope:

Transparency in real estate agent commissions is gaining traction. Expect openness about negotiable fees and potentially new payment methods. This could mean savings for both buyers and sellers who are proactive in discussing commission rates.

10. No Crash in Sight:

While affordability challenges remain, St. Louis is unlikely to experience a housing market crash. Stricter lending regulations and a lack of inventory provide a safety net. Instead, expect stagnant or slow price growth, potentially dipping with inflation in some periods.

These are just predictions, but they offer a hopeful glimpse into a more balanced and promising St. Louis housing market in 2024. Stay informed, adapt to the changing dynamics, and keep your eyes peeled for opportunities, whether you’re looking to buy, sell, or refinance!

Written by: Carlson Mortgage – a top-rated St. Louis mortgage broker providing home loans in the state of Missouri. We are routinely ranked as a #1 mortgage broker in Missouri on Yelp, Google and Zillow. We can be reached at (314) 329-7314 seven days a week.

Our loan application can be found here or you can call us at 314-329-7314 to speak with one of our mortgage loan officers. Also, here is our pre-approval page, if you are looking to buy a home or need a referral to a top real estate agent.

Let us be your source for some of the lowest mortgage interest rates in St. Louis on first-time home buyer, conventional, FHA, Veterans (VA), Jumbo and condominium (condo/town home) financing. Since 2004, our loan officers have been providing home loans and mortgage services in St. Louis that are tailored individually to your unique needs and to your financial situation.  Call us today to inquire about home loan interest rates, to get pre-approved for a purchase or a refinance mortgage, or if you have any general mortgage lending questions.