Experts Predict a Rise in Home Prices for 2024


The housing market is a topic that's on everyone's mind, especially for those considering buying a home. While concerns about rising home prices are prevalent, some individuals still harbor doubts about whether prices will indeed continue their upward trajectory. In fact, a recent survey conducted by Fannie Mae discovered that 24% of respondents anticipate a decline in home prices over the next 12 months. If you share these concerns, rest assured that expert projections provide a different perspective. Let's explore what leading experts have to say about the housing market in 2024.



Experts Anticipate Modest Price Increases

Let's take a look at the latest forecasts for home prices from eight reputable sources:

As illustrated in the graph above, the blue bar on the left signifies that, on average, experts are predicting that home prices will increase by over 2% by the end of this year—certainly not a decline.

Why Prices Are Expected to Rise

The consensus among experts is that home prices are not likely to depreciate in 2024. Several key factors support this projection:

1. Limited Inventory: The housing market continues to grapple with a shortage of available homes for sale. This scarcity of inventory places upward pressure on prices as buyers compete for a limited supply of properties.

2. Lower Mortgage Rates: Favorable mortgage rates have persisted, fueling robust demand from prospective buyers. Lower interest rates make homeownership more affordable, further driving demand and, consequently, prices. Selma Hepp, Chief Economist at CoreLogic, elucidates:

“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”

What This Means for Buyers

If you're contemplating purchasing a home, the outlook for 2024 should be encouraging. Homeownership typically involves an inherent desire for your property's value to appreciate, as it builds equity and solidifies your investment. Additionally, expected home price appreciation suggests that delaying your home purchase may result in higher costs down the road.

While concerns regarding a potential downturn in home prices persist, expert consensus indicates that prices are more likely to rise than fall in 2024. If you're apprehensive about the direction of home prices in your area or have questions about the market, don't hesitate to reach out to a real estate professional for guidance and insight. The housing market can be complex, but with the right knowledge and assistance, you can make informed decisions to secure your home and investment.

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