Expert House Price Forecasts for 2024 Revised Up

Experts have revised their 2024 home price forecasts in recent months based on the latest data and market signals, and they are now more confident that prices will rise rather than fall.

So, let’s see exactly how experts’ thinking has shifted – and what’s caused the change.

2024 Home Price Forecasts: Then and Now

The chart below shows what seven expert organizations think will happen to home prices in 2024. It compares their first 2024 home price forecasts (made at the end of 2023) with their newest projections:

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The middle column shows that, at first, these experts thought home prices would only go up a little this year. But if you look at the column on the right, you'll see they've all updated their forecasts and now think prices will go up more than they originally thought. And some of the differences are major.

There are two big factors keeping such strong upward pressure on home prices. The first is how few homes are for sale right now. According to Business Insider:

Low home inventory is a chronic problem in the US. This has generally kept home prices up . . .”

A lack of housing inventory has been pushing prices up for a long time now – and that’s not expected to change dramatically this year. But what has changed a bit is mortgage rates.

Mortgage rates were rising late last year, and buyer demand was more moderate. Most housing market experts predicted that home prices would only rise slightly in 2024.

Buyer demand has increased now that rates have fallen from their peak in October and are expected to fall further this year. That increase in demand, combined with an ongoing lack of inventory, has led experts to believe that upward pressure on prices will be stronger than expected a few months ago.

A Look Forward To Get Ahead of the Next Forecast Revisions

Real estate experts regularly revise their home price forecasts as the housing market changes. It is a normal part of their job to keep their projections up to date and reflect the most recent changes in the housing market.

That means they will continue to revise their projections as the housing market shifts, as they always do. Nobody knows how those forecasts will change next, but keep an eye on mortgage rates.

If they continue to fall throughout the year, as expected, this could lead to increased buyer demand and higher home price forecasts.

Basically, it’s all about supply and demand. With supply still so limited, anything that causes demand to go up will likely cause prices to go up, too.

Bottom Line

At first, experts expected home prices to rise only slightly this year. However, they have changed their minds and now predict that prices will rise even faster than they previously anticipated. Let’s connect so you know what to expect with prices in our area.

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