As we move into the second half of 2024, here’s what eperts say you should expect for home prices, mortgage rates, and home sales.
Home Prices Are Expected to Climb Moderately
Home prices are forecasted to rise at a more normal pace. The graph below shows the best forecasts from seven of the most trusted sources in the industry.
The reason for continued appreciation? The supply of homes for sale, Jessica Lautz, Deputy Chief Economist at the National Association of Realtors 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.”
When inventory is up compared to the last couple of years, it’s still low overalll. And because there still aren’t enough homes to go around, that will keep upward pressure on prices.
If you’re thinking of buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic. Just remember, prices aren’t expected to drop. They’ll continue climbing, just at a slower pace.
So, getting into the market sooner rather than later could still save you money in the long run. Plus, you can feel confident experts say your home will grow in value after you buy it.
Mortgage Rates Are Forecast To Come Down Slightly
One of the best pieces of news for both buyers and selllers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association, and NAR.
When you buy, even a small drop in mortgage rates can make a big difference in your monthly payments. For sellers, lower rates will bring more buyers back into the market. That can help you sell faster and potentially at a higher price. Plus, it may help you get off the fence, if you’ve been hesitant to sell due to today’s rates.
Home Sales Are Projected To Hold Steady
For 2024, the number of home sales will be about the same as last year and may even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae and NAR to 4.8 million homes that sold last year.
The average of the three forecasts is about 5 million sales in 2024 – a small increase from 2023.
With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year. This means more people will be able to move.