As 2024 approaches, you may be contemplating whether it’s the optimal time to buy or sell a home. To make an informed decision, understanding expert projections for the housing market is crucial, and the outlook appears more positive than anticipated.
Experts Forecast Ongoing Home Price Appreciation
Take a look at the latest home price forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):
Experts project that, on average, home prices will increase by approximately 2.8% by the end of this year and an additional 1.5% by the end of 2024. Contrary to expectations of a crash, prices in 2023 did not significantly decrease. The shortage of homes for sale, compared to the demand from potential buyers, is a key factor preventing a price decline. This imbalance in supply and demand continues to exert upward pressure on prices as the new year approaches.
Looking ahead, experts anticipate a continued rise in home prices next year, although the increase is expected to be somewhat less than what was observed in the current year. Despite the smaller projected rise in 2024, it’s essential to grasp that home price appreciation is cumulative. In simpler terms, if the experts’ predictions hold true, the national average suggests that after your home’s value increases by 2.8% this year, it should see an additional 1.5% growth in the following year. This cumulative price growth underscores why owning a home can be a prudent long-term decision.
Projections Show Sales Should Increase Slightly Next Year
In 2023, home sales have been relatively subdued compared to more typical years in the housing market. However, experts are anticipating increased activity in the housing market in the coming year, 2024. Projections from the same three organizations indicate a forecast for a bit more sales activity both for the remainder of the current year and into the next. This anticipated uptick in sales is seen as a positive development for the housing market, providing more options for both buyers and sellers (see graph below):
Although the expectations are for only a slight increase in total home sales, the anticipated improved activity in the housing market next year is considered positive for both buyers and sellers. The increased movement of people creates more options for potential homebuyers, enhancing their opportunities to find a suitable home. This suggests a more dynamic and potentially favorable environment for those involved in the real estate market.
The forecasts indicate that the housing market is expected to experience increased activity in 2024. This boost in activity can be attributed in part to the consistent need for people to move due to life changes such as new jobs, having children, getting married, or getting divorced. These major life events drive individuals to relocate regardless of the overall conditions of the housing market. This trend is expected to persist in the coming year and beyond. Additionally, if mortgage rates decrease, it is anticipated that this could further stimulate activity in the housing market.
Absolutely, staying informed about the forecasts for the housing market is crucial when considering buying or selling a home. Knowing what the experts project allows you to make well-informed decisions. If you’re interested, we can discuss the latest forecasts and work together to craft a plan tailored to your specific situation and goals for your next move. Feel free to ask any questions or share more details about your plans, and we can explore the best strategies for your real estate decisions.