Housing market forecast for 2024: 2023 is coming to an end and New Year is around the corner. You might wonder if 2024 would be the right time to buy or sell a home. It is important to know what experts say about the housing market if you want to make an informed decision. Alert: the projections may be better than you think
As we approach the new year, gaining insights into the anticipated market conditions can be a strategic advantage, helping you seize opportunities and navigate potential challenges in the real estate landscape. Stay tuned for a detailed analysis and expert opinions on what 2024 holds for the housing market.
Ongoing Home Price Appreciation
Look at the home price forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):
Home Price Forecasts for 2023 and 2024
As you see the maroon bar on the left on average, the forecast will end up this year at about 2.85 overall and increase by 1.5% at the end of 2024. Considering so many people thought prices might crash this year. Prices didn’t come down in 2023, because there weren’t enough homes for sale compared to the people who wanted to buy, so the inventory crunch is real. It is the general rule of supply and demand and continues to put upward pressure as prices move into the New Year.
Experts project a continued rise in home prices next year, albeit not as robust as this year. Despite a less substantial increase in 2024 compared to 2023, it’s crucial to recognize that home price appreciation is cumulative. In simpler terms, if experts are accurate, after a 2.8% rise in home values this year, the following year should see an additional increase of 1.55%. This cumulative effect underscores the importance of monitoring real estate trends for a comprehensive understanding of market dynamics and making well-informed decisions.
Projection Sales Should Increase by Next Year
Experts forecast more activity in the next year, while 2023 has not seen a lot of home sales to normal years in the housing market. Look at the graph below, what the organizations project for the rest of the year and 2024.
As the economy stabilizes and consumer confidence rises, the housing market is anticipated to rebound, presenting opportunities for both buyers and sellers. Stay tuned for the latest market trends and projections to make informed decisions in this evolving landscape.
Total Home Sales Forecasts for 2023 and 2024
While expectations are a slight uptick for sales in total, next year is good for the housing market and for the buyers and sellers. People who continue to move are the option for a hopeful buyer who is looking for a home.
What do These Forecasts show?
The housing market is expected to be active in 2024. That is a part because there are people who always need to move. The major life changes like getting a new job, having children, and getting married or divorced lead people to move into housing market conditions. If mortgage rates come down we’ll see even more activities in the housing market.
Additionally, the growing trend of remote work and flexible job arrangements is influencing housing decisions, as individuals explore living in different locations. This shift, coupled with the desire for more space and amenities, is expected to contribute to increased housing market dynamics in the coming year. Stay informed on these evolving trends to navigate the market effectively.
Conclusion
If you are planning to buy or sell a home, know the experts forecasting the future of the housing market for 2024. These forecasts help you in making informed decisions possible. To know more about the recent forecasts, connect with a local real estate agent and craft a plan for your next move.
