The Latest 2024 Housing Market Forecast

The Latest 2024 Housing Market Forecast

Experts Forecast Ongoing Home Price Appreciation

Take a look at the latest home price forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):

1. Home Price Appreciation: Experts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) project that home prices will end the current year with an overall increase of about 2.8%. Additionally, they anticipate a further 1.5% increase in home prices by the end of 2024. This upward trend is attributed to the imbalance between the limited supply of homes for sale and the high demand from potential buyers.

2. Supply and Demand Dynamics: The persistent inventory crunch, where there aren't enough homes for sale compared to the number of people looking to buy, continues to drive upward pressure on home prices. The general principle of supply and demand plays a crucial role in shaping the housing market.

3. Cumulative Home Price Growth: While the expected rise in home prices for 2024 is not as substantial as in the previous year, the cumulative effect of ongoing price growth is emphasized. The compounding nature of home price appreciation is highlighted, with the potential for continued increases in the future.

4. Sales Projections: Despite a relatively lower level of home sales in 2023 compared to more typical years, experts foresee a slight uptick in total sales for 2024. This increase in sales activity is viewed positively for both buyers and sellers, providing more options for those in the market.

5. Factors Influencing Market Activity: Major life changes, such as job relocations, family expansions, marriages, and divorces, are identified as consistent drivers of people moving, irrespective of prevailing housing market conditions. Additionally, the potential impact of changes in mortgage rates on housing market activity is acknowledged.

6. Encouragement for Informed Decision-Making: The bottom line emphasizes the importance of being informed about the forecasts for the housing market when considering buying or selling a home. Being aware of future trends allows individuals to make more informed decisions about their real estate transactions.

In summary, the overall tone of the forecast is optimistic, suggesting a continued positive trajectory for the housing market in 2024, with expectations of ongoing home price appreciation and a slight increase in sales activity. The information encourages potential buyers and sellers to stay informed and consider these projections when planning their real estate moves.