With the new year approaching, you might be contemplating whether 2024 is an opportune time for real estate transactions. To ensure well-informed decisions, understanding expert opinions on the upcoming housing market is crucial. A sneak peek: the forecasts could be more favorable than anticipated. Let's delve into the details.
Housing Market Trends and Price Expectations
Explore the most recent home price predictions provided by Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR):
Examining the left side's orange bars reveals that, on average, experts predict a 2.8% overall increase in home prices by the year's end, followed by an additional 1.5% uptick by the conclusion of 2024. This is noteworthy, especially given earlier concerns of a potential price crash this year. Contrary to expectations, prices in 2023 didn't experience a significant decline, primarily due to a persistent shortage of homes for sale relative to the demand. This imbalance in supply and demand continues, exerting upward pressure on prices as we approach the new year.
Looking ahead, experts anticipate further price growth in the coming year, albeit not as substantial as seen in 2023. Despite the projected lesser increase in 2024, it's essential to recognize that home price appreciation is cumulative. In simpler terms, if experts are accurate, your home's value, having increased by 2.8% this year on a national average, is expected to rise by an additional 1.5% in the following year. This sustained price growth underscores the long-term wisdom of homeownership.
Sales Projections Indicate a Modest Increase in the Coming Year
Although 2023 has witnessed fewer home sales compared to typical housing market years, experts predict a slight uptick in activity for the next year. The projections from the same three organizations shed light on what to expect for the remainder of this year and in 2024 (refer to the graph below):
Bottomline:
Whether you're considering a purchase or sale, being aware of experts' forecasts for the housing market's future is crucial. Informed decision-making is empowered by understanding what lies ahead. Connect with a local real estate agent to discuss the most recent forecasts and strategize for your next move.
