Experts Project Home Prices Will Increase in 2024
Despite the national upward trend in home prices, there remains a lingering concern among some individuals about the possibility of a decline. A recent survey conducted by Fannie Mae revealed that 24% of respondents anticipate a decrease in home prices over the next 12 months. This implies that nearly one in four people are grappling with this apprehension, and you might be among them.
To address this unease, let’s explore the projections of experts regarding home prices for the upcoming year.
Experts Project a Modest Increase
Examine the most recent forecasts for home prices provided by eight different sources (see graph below):
The left-sided blue bar signifies that, on average, experts are anticipating a growth of over 2% in home prices by the year’s end, rather than a decline.
The outlook for 2024 suggests that prices are not expected to depreciate. This is attributed to the ongoing scarcity of inventory and the influence of lower mortgage rates, which continue to fuel robust buyer demand. These factors are anticipated to sustain the upward trajectory of prices throughout the year. As Selma Hepp, Chief Economist at CoreLogic, explains:
“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, there is a forecast of an increase in home prices this year, and this is encouraging for those contemplating the purchase of a home. As a homeowner, the desire is for the value of your house to experience growth. This appreciation plays a crucial role in building equity, making homeownership a wise investment in the long run.
Moreover, the anticipated appreciation in home prices suggests that delaying a home purchase might result in higher costs later on. If you are prepared, willing, and able to buy, waiting could potentially lead to increased expenses.
Bottom Line
If you’re worried home prices will come down, don’t be. Many experts believe they’ll actually go up this year. If you have questions or worries about what’s happening with prices in our area, let’s connect.
