As we enter the latter half of 2024, here’s what experts anticipate for home prices, mortgage rates, and home sales.

Moderate Growth Expected in Home Prices

Home prices are projected to continue increasing at a more moderate pace. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), highlights the key factor driving this trend: “One thing that appears certain is that home prices will continue to rise, driven by persistent low housing inventory.” While there has been an increase in inventory compared to recent years, overall supply remains limited. This scarcity will likely exert upward pressure on prices. If you’re considering a purchase, the upside is that price spikes seen during the pandemic are unlikely. However, prices are expected to continue their ascent, albeit at a slower rate. Acting sooner rather than later could potentially yield long-term savings, as experts suggest home values will appreciate post-purchase.

Forecasted Decrease in Mortgage Rates

Encouraging news for both buyers and sellers is the anticipated slight decline in mortgage rates, according to forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and NAR. Even a modest reduction in rates can significantly impact monthly payments for buyers. For sellers, lower rates may attract more buyers to the market, potentially facilitating quicker sales and higher offers. This shift could also prompt hesitant sellers to list their homes.

Steady Projected Home Sales

Home sales in 2024 are projected to remain stable, with potential for a slight increase over last year’s figures. The combined forecast from experts averages around 5 million sales for the year, a marginal uptick from 2023.

Lawrence Yun, Chief Economist at NAR, points to several factors driving this trend: “Job growth, stable mortgage rates, and increased inventory from pent-up sellers are expected to stimulate sales.” With more homes available and anticipated lower mortgage rates, the market is poised to facilitate more transactions compared to the previous year, allowing more individuals to achieve their moving goals.

Bottom Line

If you’re navigating the current market and have questions or need assistance, reach out to Scott and the Smolen Team. They can provide expert guidance tailored to your specific needs and help you make informed decisions in today’s evolving housing landscape.