Housing Market Predictions: Outlook for the Second Half of 2024

As we enter the second half of 2024, here are the expert predictions for home prices, mortgage rates, and home sales.

Home Prices Are Expected To Climb Moderately

Home prices are expected to increase at a more typical rate. The graph below displays the latest projections from seven of the most reliable sources in the industry:

The ongoing appreciation is attributed to the supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:

"One consistent factor is that home prices will keep rising, and the reason for this is the lack of housing inventory."

Although inventory has increased compared to the past few years, it remains low overall. The persistent shortage of homes will continue to drive prices up.

If you're considering buying, the good news is that you won't face the dramatic price surges seen during the pandemic. However, keep in mind that prices aren't expected to fall; they will keep rising, albeit at a more gradual rate.

Entering the market sooner rather than later could save you money in the long run. Additionally, you can be assured that experts predict your home's value will appreciate after you purchase it.

Mortgage Rates Are Forecast To Come Down Slightly

One of the most positive updates for both buyers and sellers is that mortgage rates are anticipated to decrease slightly, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

When you buy, even a slight reduction in mortgage rates can significantly lower your monthly payments. For sellers, lower rates will attract more buyers, helping you sell faster and possibly at a higher price. Additionally, it may encourage you to sell if you've been hesitant due to current rates.

Home Sales Are Projected To Hold Steady

In 2024, the number of home sales is expected to be similar to last year, and there is a possibility of a slight increase. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR with the 4.8 million homes sold last year.

The combined average of the three forecasts suggests approximately 5 million home sales in 2024, reflecting a slight uptick from 2023. Lawrence Yun, Chief Economist at NAR, provides insight into the reasons behind this trend.

"Employment growth, stable mortgage rates, and increased inventory from eager home sellers will drive higher sales."

As inventory increases and mortgage rates are anticipated to decline, more homes are expected to sell this year compared to last year. This opens up more opportunities for people to relocate. Let's collaborate to ensure you're among those who benefit from these opportunities.

Bottom Line

If you have any questions about navigating the current market trends or need personalized guidance, don't hesitate to get in touch with a knowledgeable local real estate agent. They can provide expert advice tailored to your specific needs, whether you're looking to buy, sell, or simply explore your options in today's evolving housing landscape. Their expertise and insights can be invaluable in making informed decisions and achieving your real estate goals.