Housing Market Forecast

What's Ahead for the 2nd Half of 2014

As we enter the latter half of 2024, here's what industry experts predict for home prices, mortgage rates, and home sales.

Home prices are anticipated to increase moderately.

Home prices are expected to increase at a more steady rate. The primary reason for this continued appreciation is the limited supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), elaborates:

“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 slightly increased compared to previous years, it remains relatively low. Due to the ongoing shortage of available homes, prices will continue to rise.

For potential buyers, the positive news is that prices won't surge as dramatically as they did during the pandemic. However, it's important to note that prices are not expected to decline; instead, they will continue to rise at a slower rate.

Therefore, entering the market sooner rather than later could lead to long-term savings.

Additionally, experts assure that your home's value will appreciate after your purchase.

There is a prediction that mortgage rates will decrease slightly.

Exciting News for Buyers and Sellers

Good news for both buyers and sellers: Mortgage rates are predicted to decrease slightly, as stated by Fannie Mae, the Mortgage Bankers Association (MBA), and NAR. Here's why this is important:

• A slight drop in mortgage rates can significantly impact your monthly payments when you purchase a property.

• Lower rates will attract more buyers to the market, potentially leading to quicker sales and higher selling prices for sellers.

• If you've been holding back on selling due to current rates, this change might just be the push you need to make a decision.

Projected Stability in Home Sales

In 2024, home sales are projected to remain similar to last year, with a potential slight increase. Comparing the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes sold last year:

The combined average of the three forecasts suggests around 5 million sales in 2024, showing a slight uptick from 2023. Lawrence Yun, the Chief Economist at NAR, elaborates on this:

“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”

With an anticipated rise in available inventory and expected mortgage rate decreases, a slight increase in home sales is predicted for this year, allowing more individuals to relocate. Let's collaborate to ensure you are part of this moving trend.

Moral of the Story

If you have any inquiries or require assistance in navigating the market, don't hesitate to contact Amanda.