5 Things That Will See a Price Drop in 2024

The last few years have thrown a lot of households into a tailspin. Living expenses have soared due to pandemics, supply chain issues, and inflation. So will things get cheaper in 2024? The good news is that 2024 seems like it could at least cauterize the wound and stop the hemorrhaging, even if we can't expect it to alleviate all of our problems.

Check out our guide to see what may be cheaper in 2024, from domestic flights to cars from certain brands. And for anyone with a masochistic streak, we've also put together a list of what will be more expensive in 2024.

5 Things That Will See a Price Drop in 2024

1. Mortgage Rates (Maybe)

It's not a guarantee, but thanks to cooling inflation, we may be done with seeing the Federal Reserve raise interest rates for a while. Industry experts believe the Fed is finished with rate hikes and may even cut their rate in 2024 — hence why we say mortgage rates could drop.

The move could bring relief to many first-time homebuyers, but this is only the first step. According to some estimates, a drop may not come until midyear. And even then, if mortgage lenders follow the Fed, rates might only drop as low as 6.5% at best, which may not be enough to help some buyers take the plunge.

At the time of publication, the Federal Reserve had decided to maintain its benchmark rate, with three cuts signaled for 2024 that would equal a total cut of 0.75%. That said, forecasts can obviously change, so we could potentially see deeper cuts to bring more relief in the new year.

2. Home Prices (Maybe)

The other big part of the home equation is home prices themselves. For the four weeks ending December 24, 2023, home prices in the U.S. were up 4.5% year over year, and homes were selling at a median price of $364,250, according to the real estate company Redfin. Many homebuyers at all levels desperately need prices to come down, and while some experts expect home prices will remain flat or drop by around 1% in 2024, others are suggesting the drops could be as high as 1.7%.

3. Travel

We've finally started to see some decreases in travel prices recently, following a stretch of high costs no doubt influenced by pent-up travel demand. But 2024 could bring even better deals. We're already seeing extensive lists of destinations that could be cheaper this year, including Bora Bora, Santorini, London, and even Paris. (Beware pricey Metro rides in the City of Light if you're traveling around the Olympics, though).

SEE ALSO: 6 Things That Will See a Price Increase in 2024

Travel site Kayak is also forecasting cheaper domestic travel in the U.S., with airfare dropping 16% this year compared to 2023. Additionally, hotel rates are slated to drop by 9% year over year, while car rentals could see a decrease of 14%. If you're looking to travel to Mexico, note that we may also see a decent selection of cheap flights to different Mexican locales in 2024, as well.

4. Ford Vehicles

Those in the market for a new vehicle may want consider Ford's lineup for 2024. Ford Motor Co. is forecasting prices will come down far enough to reach 2019-like levels, thanks in part to more incentives and smaller dealer markups. Ford is reportedly aiming for a run rate of about 13.5% this year; that appears in this case to be the percentage of disposable income buyers can expect to pay. As far as incentives, those are expected to increase by about $1,000. So if you need to upgrade your car, this may be the year to do it.

5. Certain Groceries

We may not be able to count on grocery prices dropping to Home Alone levels in 2024, but the cost of some items should drop compared to 2023. For instance, the following items all have the potential to cost less on your grocery trips this year:

• Sugar
• Coffee
• Corn

Not everything will be cheaper in 2024, though. According to industry experts, a lot of the reason prices on these dry goods are prone to level off and even drop is because supply is finally having a chance to catch up to demand. That said, aside from the dry goods mentioned above, eggs may see better stabilized prices (or even lower costs). But the price of other items, such as certain meats, may go up in the new year.

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