Experts Predict Home Prices Will Rise in 2024

Even though home prices are rising across the country, some people are concerned that they will fall again. In fact, a recent survey from Fannie Mae found that 24% of people think home prices will actually decline over the next 12 months. That means that nearly one in every four people is experiencing fear, and you could be one of them.

To help ease that concern, here's what experts forecast will happen with prices this year.

Experts Project a Modest Increase

Check out the latest home price forecasts from eight different sources (see graph below):

The blue bar on the left means, on average, experts think home prices will go up over 2% by the end of this year – not down.

Prices aren’t likely to depreciate in 2024 because inventory is still tight and lower mortgage rates are leading to strong buyer demand. Those two factors will keep pushing prices up as the year goes on. 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?

Experts are saying home prices will go up this year, and that's good news if you're thinking about buying a home. When you become a homeowner, you want the value of your house to go up. That appreciation is what builds equity and makes homeownership such a good investment over time.

Beyond that, expected home price appreciation means that if you are ready, willing, and able to buy, waiting only increases the cost later. 

Bottom Line

If you are worried about home prices dropping, do not be. Many experts believe they will actually increase this year. If you have any questions or concerns about the current price situation in our area, please contact us.

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