The Most Recent Housing Market Forecast for 2024
The new year is quickly approaching, and you may be wondering if 2024 will be a good time to buy or sell a home. If you want to make the best decision possible, you should know what the experts think about the housing market's future. Spoiler alert: the projections may be better than you think. Here’s why.
Experts Forecast Ongoing Home Price Appreciation
As shown in the orange bars on the left, experts predict that prices will rise by about 2.8% this year, and another 1.5% by the end of 2024. That is significant given how many people predicted a price drop this year. The truth is that prices did not fall dramatically in 2023 because there simply were not enough homes for sale in comparison to the number of people who wanted or needed to buy them, and that inventory crunch remains very real. This is the general rule of supply and demand, and it is continuing to put upward pressure on prices as the new year begins.
Looking forward, experts project home prices will continue to rise next year, but not quite as much as they did this year. Even though the expected increase in 2024 is not as large as the one in 2023, it is critical to remember that home price appreciation is cumulative. In layman's terms, if the experts are correct, your home's value should rise by another 1.5% next year after rising by 2.8% this year, according to the national average. That ongoing price growth is a big reason why owning a home can be a good long-term investment.
Sales are expected to rise slightly next year, according to projections.
While 2023 has not seen a lot of home sales in comparison to more normal years in the housing market, experts predict that activity will pick up next year. Here’s what those same three organizations project for the rest of this year and in 2024 (see graph below):
While total sales are expected to rise only slightly next year, increased activity is good for the housing market and for buyers and sellers like you. As people continue to relocate, more options for homebuyers become available.
So, what do these forecasts indicate? In 2024, the housing market is expected to be more active. That may be in part because there will always be people who need to move. People will change jobs, have children, marry or divorce - these and other major life events will cause people to relocate regardless of housing market conditions. That will continue to be true next year and for many years to come. And if mortgage rates come down, we’ll see even more activity in the housing market.
If you are thinking about buying or selling, you should know what the experts think about the housing market's future. When you know what is coming, you can make the most informed decision possible. Let us talk about the latest forecasts and devise a strategy for your next move.