As we move into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates, and home sales.
Home Prices Are Expected To Climb Moderately
Home prices are forecasted to rise at a more normal pace. The chart below shows forecasts from seven of the most trusted sources in the industry.
The reason for continued appreciation is supply. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors, explains:
“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don’t have housing inventory.”
While inventory is up compared to recent years, it’s still low overall. Because demand continues to outpace supply, upward pressure on prices remains.
If you’re thinking of buying, prices aren’t expected to skyrocket like during the pandemic—but they also aren’t expected to fall. Buying sooner rather than later may still save money over time, and experts agree homes will grow in value after purchase.
Mortgage Rates Are Forecast To Come Down Slightly
Mortgage rates are expected to ease slightly, according to Fannie Mae, the Mortgage Bankers Association, and NAR.
Even a small decrease in rates can significantly impact monthly payments for buyers. For sellers, lower rates bring more buyers into the market, helping homes sell faster and potentially at higher prices.
Home Sales Are Projected To Hold Steady
Home sales in 2024 are expected to be similar to last year, with a slight increase possible. The chart below compares forecasts from Fannie Mae, MBA, and NAR.
The average forecast projects about 5 million home sales in 2024—slightly higher than 2023. Lawrence Yun, Chief Economist at NAR, explains:
“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”
With more inventory and easing rates, more people will be able to move this year.
Bottom Line
If you have questions or need help navigating today’s market, reach out to a knowledgeable local real estate agent for guidance tailored to your goals.
