Expert Predictions You Need to Know in Decoding the 2024 Housing Market

As we navigate the second half of 2024, the real estate market continues to evolve, presenting both opportunities and challenges for homebuyers and sellers. Understanding the current market dynamics and expert predictions for the future can help make informed decisions and achieve your homeownership goals. In this blog, we'll delve into the latest insights on home prices, mortgage rates, and home sales, providing a comprehensive overview of the 2024 housing market outlook.

Home Prices: Moderate Appreciation Expected

Despite the recent slowdown, home prices are expected to continue appreciating in 2024, albeit at a more moderate pace. This continued growth is primarily attributed to the persistent shortage of homes for sale.  According to Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), "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 past couple of years, it remains relatively low overall. This limited supply will continue to exert upward pressure on prices, although the rate of appreciation is expected to be more gradual than the rapid increases seen during the pandemic.

Mortgage Rates: Potential for Slight Decline

One of the most positive developments for both buyers and sellers is the forecast for a slight decline in mortgage rates.  Fannie Mae, the Mortgage Bankers Association (MBA), and NAR all anticipate a modest decrease in rates.  

This potential decline in rates could significantly impact both buyers and sellers.  For buyers, even a small drop in rates can lead to lower monthly payments, making homes more affordable.  For sellers, lower rates can attract more buyers back into the market, potentially leading to faster sales and higher prices.

Home Sales: Steady Growth Projected

The number of home sales in 2024 is expected to remain relatively stable compared to 2023, with a slight increase projected by experts.  The average of three major forecasts suggests approximately 5 million sales in 2024, a modest increase from the previous year.  

Lawrence Yun, Chief Economist at NAR, attributes this projected growth to several factors: "Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales."

The combination of increased inventory, potentially lower mortgage rates, and a strong job market is expected to fuel a slight increase in home sales in 2024, providing more opportunities for people to achieve their homeownership dreams.

The 2024 housing market outlook presents a balanced picture, with moderate home price appreciation, potential for a slight decline in mortgage rates, and steady growth in home sales.  This dynamic environment offers both opportunities and challenges for buyers and sellers. By staying informed about current market trends and expert predictions, you can make informed decisions and navigate this evolving landscape successfully.  Remember, working with a knowledgeable real estate professional can provide valuable guidance and insights to help you achieve your homeownership goals in this dynamic market.