The New Year is coming soon, and you might be thinking about whether 2024 is a good time to buy or sell a home. To make the best decision, it’s important to understand what experts are saying about the housing market in the upcoming year. Good news: the predictions might be better than you expect. Let’s find out why.
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):
As shown in the orange bars on the left, experts predict that, on average, home prices will go up by about 2.8% by the end of this year and another 1.5% by the end of 2024. This is significant news, especially since many people thought prices would drop this year. However, that didn’t happen because there weren’t enough homes available for sale compared to the number of people wanting to buy them. This shortage in inventory is still a real issue, following the basic law of supply and demand, which continues to push prices higher as we enter the new year.
Looking ahead, experts anticipate that home prices will keep rising next year, although not as much as they did this year. Even though the expected increase in 2024 is smaller than in 2023, it’s crucial to understand that home price appreciation accumulates over time. In simpler terms, if the experts are correct, the national average suggests that after your home’s value goes up by 2.8% this year, it should increase by another 1.5% next year. This continuous growth in property value is a significant reason why owning a home can be a wise decision in the long run.
Projections Show Sales Should Increase Slightly Next Year Even though 2023 has had fewer home sales compared to typical years in the housing market, experts are predicting a bit more activity for the coming year. The projections from the same three organizations for the remainder of this year and in 2024 are outlined in the graph below:
While the predictions suggest only a slight increase in total sales, the anticipated improvement in activity next year is positive for the housing market and for both buyers and sellers, including you. As people continue to relocate, it creates opportunities for prospective buyers in search of a home.
So, what do these forecasts indicate? The housing market is expected to be more dynamic in 2024. This could be attributed in part to the fact that people will always have reasons to move. Factors like finding new jobs, expanding families, marriage, or divorce often prompt individuals to relocate, regardless of the current housing market conditions. This trend is expected to continue next year and in the years to come. Moreover, if mortgage rates decrease, we might witness even more activity in the housing market.
Bottom Line
If you’re considering buying or selling, staying informed about the experts’ predictions for the housing market’s future is crucial. Being aware of what lies ahead allows you to make the most informed decisions. Let’s discuss the latest forecasts together and create a plan for your next move. Feel free to reach out, and we can navigate this journey together.
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