The new year is right around the corner, and you might be wondering if 2024 will be the right time tobuyorsell a home. If you want to make the most informed decision possible, its important to know what the experts have to say about whats ahead for the housing market. Spoiler alert: the projections may be better than you think. Heres why.
Experts Forecast Ongoing Home Price Appreciation
Take a look at the latest home price forecasts fromFannie Mae, theMortgage Bankers Association(MBA), and theNational Association of Realtors(NAR):
As you can see in the orange bars on the left, on average, experts forecastpriceswill end this year up about 2.8% overall, and increase by another 1.5% by the end of 2024. Thats big news, considering so many people thought priceswould crashthis year. The truth is, prices didnt come tumbling way down in2023, and thats because there just werent enough homes for sale compared to the number of people who wanted or needed to buy them, and that inventory crunch is still very real. This is the general rule of supply and demand, and it continues to put upward pressure on prices as we move into the new year.
Looking forward, experts projecthome priceswill continue to rise next year, but not quite as much as they did this year. Even though the expected rise in 2024 isnt as big as in 2023, its important to understand home price appreciation is cumulative. In simpler terms, this means if the experts are right, according to the national average, after your homes value goes up by 2.8% this year, it should go up by another 1.5% next year. That ongoing price growth is a big part of whyowning a homecan be a smart decision in the long run.
Projections Show Sales Should Increase Slightly Next Year
While 2023 hasnt seen a lot of home sales relative to more normal years in the housing market, experts are forecasting a bit more activity next year. Heres what those same three organizations project for the rest of this year, and in 2024 (see graph below):
While expectations are for just a slight uptick in total sales, improved activity next year is a good thing for the housing market, and forbuyersand sellers like you. As people continue to move, that opens up options for hopeful buyers who are looking for a home.
So, what do these forecasts show? The housing market is expected to be more active in 2024. That may be in part because there will always be people whoneed to move. People will get new jobs, have children, get married or divorced these and other major life changes lead people to move regardless of housing market conditions. That will remain true next year, and for years to come. And if mortgage rates come down, well see even more activity in the housing market.
Bottom Line
If youre thinking about buying or selling, its important to know what the experts are forecasting for the future of the housing market. When youre in the know about whats ahead, you can make the most informed decision possible. Call me, Marie McLaughlin at 727-858-7569 when you want tochat about the latest forecasts, and craft a plan for your next move.
Source:https://www.keepingcurrentmatters.com/2023/11/15/the-latest-2024-housing-market-forecast/
