What’s Ahead for the 2nd Half of 2024

As we move into the second half of 2024, here’s what experts predict for home prices, mortgage rates, and home sales.

Home Prices Are Expected To Climb Moderately

Home prices are projected to rise at a more consistent pace. The graph below displays the latest forecasts from seven of the most trusted industry sources:

The reason for continued appreciation is the limited supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:

“One thing that seems to be pretty solid is that home prices are going to continue to go up, and the reason is that we don't have housing inventory.”

While inventory has increased compared to the last couple of years, it remains low overall. The ongoing shortage of homes keeps upward pressure on prices. If you’re thinking of buying, the good news is you won’t have to contend with prices skyrocketing as they did during the pandemic. However, prices are not expected to drop; they’ll continue climbing at a slower pace.

Entering the market sooner rather than later could save you money in the long run. Plus, you can feel confident that your home will grow in value after your purchase.

Mortgage Rates Are Forecast To Come Down Slightly

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to decrease slightly, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

When you buy, even a small drop in mortgage rates can significantly impact your monthly payments. For sellers, lower rates will attract more buyers back into the market, helping you sell faster and potentially at a higher price. It may also encourage you to sell if you’ve been hesitant due to today’s rates.

Home Sales Are Projected To Hold Steady

In 2024, the number of home sales is expected to remain steady or even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes sold last year:

The average of the three forecasts is about 5 million sales in 2024, a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:

“Job gains, steady mortgage rates, and the release of inventory from pent-up home sellers will lead to more sales.”

With more inventory available and mortgage rates expected to decrease, a few more homes are anticipated to be sold this year compared to last year. This means more people will be able to move. Let’s work together to make sure you’re one of them.If you have any questions or need help navigating the market, reach out.