As we approach the new year, many are curious about whether 2024 will be the right time to enter the real estate market. To make an informed decision, it’s crucial to consider the insights of industry experts. Surprisingly, their projections for the housing market may be more positive than anticipated. Here’s why.
According to the latest forecasts from reputable sources such as Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR), experts predict a continued appreciation in home prices. On average, they anticipate a 2.8% increase by the end of this year, followed by a 1.5% rise in 2024. This is significant news, especially considering the widespread belief that prices would plummet in 2023. The reality is that prices remained stable due to a shortage of available homes compared to the high demand from buyers. This imbalance between supply and demand continues to exert upward pressure on prices as we head into the new year.
Looking ahead, experts expect home prices to continue rising in 2024, albeit at a slightly slower pace than this year. While the projected increase may not be as substantial, it’s important to understand that home price appreciation is cumulative. In simpler terms, if the experts’ predictions hold true, the national average suggests that after your home’s value increases by 2.8% this year, it should further appreciate by another 1.5% next year. This ongoing growth in prices underscores the long-term benefits of homeownership.
Sales are Expected to Rise Slightly in the Upcoming Year
Furthermore, experts anticipate a slight uptick in home sales next year. Although 2023 has seen fewer sales compared to previous years, the forecasted increase in activity is a positive sign for both the housing market and prospective buyers and sellers. As people continue to relocate for various reasons such as job changes, starting families, or personal circumstances, it opens up opportunities for those searching for a new home.
The Bottom Line
The forecasts indicate that the housing market will be more active in 2024. This can be attributed to the constant need for people to move, regardless of market conditions. Factors such as job changes, family dynamics, and other significant life events will continue to drive relocation in the coming years. Additionally, if mortgage rates decrease, we can expect even more activity in the housing market.
If you’re considering buying or selling a home, it’s crucial to stay informed about the experts’ forecasts for the future of the housing market. By understanding what lies ahead, you can make the most educated decision possible. Reach out to a local expert to discuss the latest projections and develop a strategic plan for your next move.
What To Do
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