Home Prices Expected to Rise in 2024

Despite the national increase in home prices, there is still concern among some individuals that they might experience a decline. A recent survey by Fannie Mae revealed that 24% of respondents anticipate a decrease in home prices over the next 12 months. This indicates that nearly one in four people are grappling with this apprehension, and you might be among them as well.

To address that concern, here's what experts predict will transpire with prices this year.

Experts Anticipate a Moderate Rise

Explore the most recent predictions for home prices from eight different sources (refer to the graph below):

The leftmost blue bar indicates that, on average, experts anticipate home prices to increase by over 2% by the end of this year, ruling out a decline.

The likelihood of prices decreasing in 2024 is low, primarily due to the continued tight inventory and the impact of lower mortgage rates driving robust buyer demand. These two factors will continue to exert upward pressure on prices throughout the year. Chief Economist at CoreLogic, Selma Hepp, provides insight, stating:

"As mortgage rates decline, the anticipated strong demand for homes in early 2024 is expected to exert pressure on prices, mirroring trends seen in early 2023. In essence, most markets are projected to achieve new highs in home prices throughout 2024."

How Does This Impact You?

Experts predict a rise in home prices this year, and this is positive news for potential homebuyers. When you become a homeowner, an increase in the value of your house is desirable. This appreciation is crucial for building equity, making homeownership a valuable long-term investment.

Furthermore, anticipated home price appreciation implies that if you're prepared and eager to make a purchase, delaying may result in higher costs later on.

Bottom Line

If you have concerns about the possibility of home prices decreasing, rest assured that many experts anticipate an increase this year. Should you have questions or apprehensions regarding price trends in your area, seeking advice from a real estate agent is a prudent step.