Housing Market Forecast: What’s Ahead for the 2nd Half of 2024
As we move into the second half of 2024, here’s what experts say you should expect for home prices, mortgage rates, and home sales.Home Prices Are Expected To Climb ModeratelyHome prices are forecasted to rise at a more normal pace. The graph below shows the latest forecasts from seven of the most trusted sources in the industry:The reason for continued appreciation? The supply of homes for sale. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), explains:“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 is up compared to the last couple of years, it’s still low overall. And because there still aren’t enough homes to go around, that’ll keep upward pressure on prices.If you’re thinking of buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic. Just remember, prices aren’t expected to drop. They’ll continue climbing, just at a slower pace.So, getting into the market sooner rather than later could still save you money in the long run. Plus, you can feel confident experts say your home will grow in value after you buy it.Mortgage Rates Are Forecast To Come Down SlightlyOne of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):When you buy, even a small drop in mortgage rates can make a big difference in your monthly payments. For sellers, lower rates will bring more buyers back into the market, which can help you sell faster and potentially at a higher price. Plus, it may help you get off the fence, if you’ve been hesitant to sell due to today’s rates.Home Sales Are Projected To Hold SteadyFor 2024, the number of home sales will be about the same as last year and may even rise slightly. The graph below compares the 2024 home sales forecasts from Fannie Mae, MBA, and NAR to the 4.8 million homes that sold last year:The average of the three forecasts is about 5 million sales in 2024 – a small increase from 2023. Lawrence Yun, Chief Economist at NAR, explains why:“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales.”With more inventory available and mortgage rates expected to go down, a few more homes are expected to be sold this year compared to last year. This means more people will be able to move. Let's work together to make sure you’re one of them.Bottom LineIf you have any questions or need help navigating the market, reach out to a local real estate agent.
Debunking 2024 Housing Market Myths
Don't let misconceptions steer your home-buying journey off course! Let's unpack the myths and face the realities of today's housing market.📉 Myth: "I'll just wait until mortgage rates fall."✨ Reality: Sure, experts anticipate a drop in rates, but playing a waiting game is risky business. Instead of trying to outsmart the market, why not work with a trusted professional for expert advice? They've got the insights to guide you through rate fluctuations with confidence!💸 Myth: "A price crash is coming, I'll snag a better deal then."✨ Reality: Hold your horses! Housing prices aren't taking a nosedive. The latest data reveals prices are indeed climbing—albeit at a gentler slope. If you're banking on a crash, you might end up paying more later rather than less. Food for thought!🔍 Myth: "There's nothing out there to buy anyway."✨ Reality: While options were slim pickings before, guess what? The supply of homes for sale is finally growing this year! More homes mean more choices for you. Get ready to explore an expanding array of possibilities in finding your perfect pad.💰 Myth: "I need to save 20% for a down payment or bust."✨ Reality: That's old-school thinking! Many buyers are securing their dream homes with much less upfront. With loan programs offering down payments as little as 3.5% or even zero percent for qualified buyers, that '20% rule' is no longer set in stone.Navigating the home-buying process can be tricky—but it doesn't have to be when you're armed with facts instead of fiction! Remember these key points:- Mortgage rates may fluctuate; seek expert guidance.- Working with a trusted professional will help smooth your path.- Housing prices aren't falling—they're just on a slower ascent.- A variety of down payment options exist to suit different financial situations.Ready to make an informed move in the 2024 housing market? Reach out and let expertise light your way home! 🗝️🏡 #HomeBuyingTruths #MortgageRates #ExpertAdvice #RealEstateRealityCheck
Experts Project Home Prices Will Increase in 2024
Real estate experts are predicting that home prices will go up in 2024, which is crucial information for potential buyers to keep in mind. Although the increase is expected to be moderate, it serves as a gentle reminder for buyers to take action sooner rather than later. Prominent analysts in the real estate field attribute this projected price increase to several factors. One of these factors is the persistent high demand for housing. With a growing population and more people entering the housing market, there naturally comes an increased demand for homes. This heightened demand, combined with a limited supply of available properties, creates a favorable environment for prices to appreciate. Another contributing factor to this projected increase is the steady growth of the economy. As the economy strengthens and job opportunities become more abundant, individuals and families are likely to have greater purchasing power. This increased purchasing power can ultimately drive up home prices as buyers are willing to pay higher amounts for desirable properties. It's worth noting that while this projection overall looks positive, it's important to emphasize that the expected increase in home prices will be modest.Industry experts do not anticipate a sudden surge in prices similar to what was seen in previous years. This forecast aligns with the general belief that the housing market is gradually stabilizing following a period of substantial growth. For those considering buying a home, this projection serves as a reminder to approach the market strategically and seize opportunities. While waiting might seem like a cautious decision for some, it's important to consider the potential consequences of delaying action. The projected increase in home prices means that buyers who postpone their purchase until 2024 could end up paying more for the same property compared to buying in the current market. To navigate this projected price increase, one strategy for buyers is to start their search early and take proactive measures. By initiating the home buying process well in advance, potential buyers can gain a better understanding of current market conditions and position themselves to make competitive offers when they find their ideal property. Seeking guidance from a trusted real estate agent can also provide valuable insights and assistance throughout the purchasing process. Furthermore, potential buyers should carefully evaluate their financing options. Securing a favorable interest rate now can help mitigate the impact of rising home prices down the line. Exploring different mortgage options and collaborating with a reputable lender can assist buyers in obtaining the most advantageous financing terms.It's important to note that even though experts anticipate a rise in home prices in 2024, the real estate market can be unpredictable. Various external factors like economic fluctuations, government policy changes or unforeseen events can unexpectedly influence the market. That's why it's crucial for buyers to stay informed and closely monitor the market. To summarize, experts predict a modest increase in home prices in 2024. The consistent demand for housing, along with a growing economy, suggests that buyers can anticipate price hikes in the upcoming years. To navigate these projections successfully, potential buyers should initiate their search early on, take proactive measures and explore financing options. By staying well informed and making strategic decisions, buyers can position themselves to make a solid investment in the real estate market.
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