As we move into the second half of 2024, experts provide valuable insights into what you can expect regarding home prices, mortgage rates, and home sales.
Home Prices Set to Climb Moderately
Home prices are anticipated to increase at a more typical pace. The graph below shows the latest forecasts from seven of the most trusted sources in the industry:
The primary reason for continued appreciation is the limited supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:
“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”
Although inventory has risen compared to the past couple of years, it remains low overall. This scarcity of homes continues to drive prices upward.
For potential buyers, the positive news is that prices are not expected to skyrocket as they did during the pandemic. However, prices aren’t likely to drop either; they’ll continue to rise, albeit more slowly.
Entering the market sooner rather than later could save you money in the long term. Additionally, you can feel confident that experts predict your home will appreciate in value after you purchase it.
Slight Decline in Mortgage Rates Expected
One of the best pieces of news for both buyers and sellers is the expected slight decline in mortgage rates. Forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and NAR indicate this trend (see chart below):
For buyers, even a small drop in mortgage rates can significantly reduce monthly payments. For sellers, lower rates will attract more buyers, helping you sell faster and potentially at a higher price. This may also encourage those hesitant to sell due to current rates to reconsider.
Home Sales Projected to Hold Steady
Home sales in 2024 are expected to remain steady and may even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes sold last year:
The average of the three forecasts is around 5 million sales in 2024, representing a modest increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:
“Job gains, steady mortgage rates, and the release of inventory from pent-up home sellers will lead to more sales.”
With more inventory available and mortgage rates expected to decline, a slight increase in home sales is anticipated compared to last year. This means more people will be able to move, and together, we can ensure you’re one of them.
Bottom Line!
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