I’m Jen Blanchard with Berkshire Hathaway HomeServices, and today we’re going to break down the housing market forecast for the remainder of 2024. We’ll cover three key areas: home prices, mortgage rates, and home sales. Whether you’re buying or selling, these insights will help you make informed decisions in this dynamic market. So let’s dive in!
Home Prices: A More Normal Pace
Over the past few years, we’ve seen home prices skyrocket, but experts are forecasting a return to a more normal pace of price appreciation in 2024. While prices are still expected to rise, the rapid, pandemic-fueled increases are behind us.
Here’s the key reason: low housing inventory. Although inventory has improved slightly compared to the past couple of years, it’s still not enough to meet demand. This shortage will continue to place upward pressure on prices
If you’re thinking about buying, now is a great time to get into the market before prices climb further. Remember, home prices are not expected to drop, just increase at a slower pace. Buying sooner rather than later could save you money in the long run, and as a bonus, your home’s value will continue to grow over time!
Mortgage Rates: Slight Decrease Expected
One of the most encouraging developments for both buyers and sellers is the expected slight decrease in mortgage rates. Experts, including those from Fannie Mae, the Mortgage Bankers Association, and the National Association of Realtors (NAR), anticipate a modest dip in rates later this year.
Even a small drop in mortgage rates can have a significant impact on your monthly payments, making homes more affordable for buyers. For sellers, lower rates may bring more buyers back into the market, which means you could sell faster—and potentially for a higher price.
If you’ve been on the fence about selling due to higher interest rates, this slight rate drop might be just the incentive you need to move forward with your plans.
Home Sales: Holding Steady with a Slight Rise
When it comes to home sales, projections indicate that sales will remain relatively steady, with a slight increase compared to last year. On average, industry experts like the NAR, Fannie Mae, and the Mortgage Bankers Association are forecasting around 5 million home sales in 2024, up from 4.8 million in 2023.
The reasoning behind this forecast is a combination of factors, including job gains, stable mortgage rates, and an increase in inventory from pent-up sellers who were holding back. More homes on the market and lower rates could lead to more transactions, which is good news for both buyers and sellers.
If you’re planning to move, this year might be the perfect time. The availability of homes will increase slightly, and mortgage rates should become more favorable. Let’s work together to ensure you’re positioned to take advantage of these trends.
The Bottom Line: Ready to Navigate the Market?
The housing market in the second half of 2024 is shaping up to be a balanced one, with moderate price growth, slightly lower mortgage rates, and steady home sales. Whether you’re thinking of buying or selling, it’s essential to stay informed about these trends to make the best decisions.
If you have any questions about how these trends impact your home-buying or selling journey, don’t hesitate to reach out! I’m here to help you navigate the market and make the best choices for your situation.
