With the new year on the horizon, you might be contemplating whether 2024 is the opportune time to buy or sell a home. Making an informed decision requires insights from housing market experts, and the projections for the upcoming year may pleasantly surprise you.

 

Continued Home Price Appreciation:

Recent forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR) indicate a positive trajectory for home prices.

The orange bars in the provided graph reveal that, on average, experts anticipate a 2.8% increase in prices by the end of this year, followed by a further 1.5% increase by the close of 2024. Contrary to expectations of a crash, the limited inventory of homes for sale compared to buyer demand has kept prices stable. The principle of supply and demand is anticipated to persist, exerting upward pressure on prices in the coming year.

Looking ahead, experts foresee a continuation of home price growth in 2024, albeit at a slightly slower pace than in 2023. While the expected rise may be more modest, the cumulative nature of home price appreciation emphasizes the long-term value of homeownership.

 

Increased Sales Activity in 2024:

Although 2023 has experienced a relatively subdued level of home sales compared to typical market conditions, experts project a modest uptick in activity for 2024 (see graph below):

This positive outlook, as depicted in the graph, signifies an encouraging trend for both buyers and sellers. As the housing market becomes more active, it creates opportunities for prospective buyers seeking a new home.

Essentially, the forecasts collectively indicate a more dynamic housing market in 2024. Factors such as job changes, life events, and evolving family situations contribute to a constant demand for housing. Additionally, if mortgage rates decrease, the market is likely to witness heightened activity.

 

Whether you’re considering buying or selling, staying informed about housing market forecasts is crucial. Understanding the anticipated trends for the upcoming year allows you to make well-informed decisions. Let’s connect about the latest forecasts and collaboratively devise a strategic plan for your next move!