2024 Home Price Forecasts by Experts

In recent months, experts have adjusted their 2024 home price predictions after analyzing the most recent data and market indicators, and they are increasingly certain that prices will increase rather than decrease.

Therefore, let's examine precisely how the perspectives of experts have changed and the factors that have led to this shift.

Comparing 2024 Home Price Forecasts: Past and Present

The following chart illustrates the anticipated movement of home prices in 2024 according to seven expert organizations. It contrasts their initial 2024 home price predictions, made at the end of 2023, with their most recent projections.

The central column indicates that initially, these experts anticipated only a slight increase in home prices for this year. However, upon reviewing the right-hand column, it is evident that they have all revised their forecasts and now anticipate a more significant price increase than their original projections, with some of the differences being substantial.

Two significant factors are contributing to the substantial upward pressure on home prices. The first factor is the limited number of homes currently available for sale, as reported by Business Insider.

"The United States consistently faces a persistent issue of low home inventory, which has typically sustained elevated home prices..."

The shortage of housing inventory has been a long-standing driver of price increases, and it's anticipated that this situation will not undergo significant change this year. However, there has been a slight shift in mortgage rates.

Towards the end of last year, while the majority of housing market experts were predicting a slight increase in home prices for 2024, mortgage rates were higher, and buyer demand was relatively moderate.

With rates now decreasing from their highest point in October and anticipated further declines throughout the year, there has been a surge in buyer demand. This heightened demand, coupled with the persistent inventory shortage, is the reason experts believe that the upward pressure on prices will be more pronounced than they had anticipated a few months ago.

Anticipating Future Revisions: Staying Ahead of the Next Forecast

Real estate experts routinely adjust their home price predictions in response to changes in the housing market. This standard practice ensures that their projections remain current and incorporate the most recent developments in the housing market.

This implies that they will persist in modifying their projections in response to shifts in the housing market, as they have always done. The specific nature of these future forecast adjustments is uncertain, but it is advisable to monitor mortgage rates.

Should they decrease as anticipated throughout the year, this could result in increased buyer demand and potentially even higher home price projections.

In essence, the dynamics revolve around supply and demand. Given the ongoing scarcity of supply, any factor that stimulates an increase in demand is likely to correspond with a rise in prices as well.

Bottom Line

Initially, experts anticipated a slight increase in home prices for the year. However, they have since revised their forecasts to predict even greater price growth than their original expectations. It is advisable to engage with a local real estate agent to gain insights into what to anticipate regarding prices in your specific area.