Experts Project Home Prices Will Increase In 2024
Despite the national upward trend in home prices, there remains a level of concern among some individuals who fear a potential downturn. A recent survey conducted by Fannie Mae revealed that 24% of respondents believe that home prices will decrease in the coming 12 months. This implies that nearly one in four individuals is grappling with such apprehensions, and you might be among them.
To alleviate these concerns, here is the experts' forecast for what is expected to transpire with home prices in the current year.
Anticipate A Modest Rise According To Expert Projections
Explore the most recent predictions for home prices from eight distinct sources (refer to the graph below):
The leftward blue bar indicates that, on average, experts anticipate a growth of over 2% in home prices by the conclusion of the current year - dispelling concerns of a decline.
The outlook for 2024 suggests that prices are unlikely to depreciate. This is attributed to the persistently tight inventory and the continued impact of lower mortgage rates driving robust buyer demand. As CoreLogic's Chief Economist, Selma Hepp, 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 Does This Mean For You
According to experts, home prices are anticipated to rise this year, which is favorable news for prospective homebuyers. If you're contemplating homeownership, the prospect of increasing home values is beneficial. The appreciation in value contributes to building equity, making homeownership a lucrative investment over time.
Moreover, the projected appreciation in home prices implies that delaying a purchase may result in higher costs later.
If concerns about a potential decrease in home prices are on your mind, there's reassurance from experts who predict an upward trend this year. For personalized insights into the market conditions in your area, seeking advice from a real estate agent is a prudent step. Contact the Focus Real Estate Team today.