The 2024 Housing Market Forecast: Newest Updates

With the new year just around the corner, you might be wondering if 2024 is the right time for a home purchase or sell. To make well-informed decisions, understanding the insights of housing market experts is crucial. The upcoming trends might pleasantly surprise you, and here's why.

Experts Forecast Ongoing Home Price Appreciation

Explore the most recent predictions for home prices provided by Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):

As evident in the leftmost orange bars, experts, on average, predict a year-end increase of approximately 2.8% in prices, with an additional 1.5% uptick anticipated by the close of 2024. This stands as significant news, particularly given the widespread belief that prices would experience a sharp decline this year. The reality is, in 2023, prices did not plummet significantly, largely due to an insufficient number of homes for sale relative to the high demand from potential buyers. This inventory shortage remains a persistent issue, adhering to the fundamental principles of supply and demand, thereby exerting upward pressure on prices as we transition into the upcoming year.

Moving ahead, experts foresee a continued increase in home prices next year, albeit at a slightly slower pace compared to the current year. While the anticipated rise in 2024 may not be as significant as in 2023, it's important to note that home price appreciation adds up over time. In simpler terms, if the experts' predictions are accurate, based on the national average, your home's value is expected to go up by another 1.5% next year after experiencing a 2.8% increase this year. This ongoing price growth is a key reason why owning a home can be a prudent decision in the long run.

Projections Show Sales Should Increase Slightly Next Year

Although 2023 has witnessed fewer home sales compared to typical years in the housing market, experts predict a slight uptick in activity for the upcoming year. The following outlines the projections of the same three organizations for the remainder of this year and for 2024 (refer to the graph below):

Anticipating only a modest increase in overall sales, the prospect of enhanced activity in the coming year is positive news for both the housing market and individuals involved in buying and selling, such as yourself. As individuals continue to relocate, it creates opportunities for prospective buyers in search of a home.

So, what do these forecasts reveal? The housing market is expected to experience heightened activity in 2024. This could be due, in part, to the consistent need for people to relocate. Factors such as obtaining new jobs, starting families, getting married, or going through divorces often drive individuals to move, regardless of the conditions in the housing market. This trend is expected to continue into the next year and beyond. Moreover, if mortgage rates decrease, we can anticipate even more activity in the housing market.

Bottom Line

If you're considering a real estate transaction, it's crucial to understand the forecasts from housing market experts. Being well-informed about future trends allows you to make the most knowledgeable decisions. Reach out to a local real estate agent to discuss the latest forecasts and strategize for your upcoming move.