Market expectations for home prices, mortgage rates, and home sales in the second half of 2024

As we move into the second half of 2024, experts have some predictions for what to expect for home prices, mortgage rates, and home sales.

Home prices are expected to climb moderately

Home price increases are expected to be at a more normal pace compared to recent years. According to Fannie Mae, the Mortgage Bankers Association (MBA), and the National Association of Realtors (NAR), home prices will continue to rise due to low inventory.

image.png
“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,” says Jessica Lautz, Deputy Chief Economist at NAR.

There has been an increase in inventory compared to the last few years, but it is still low overall. Because there still aren’t enough homes for sale, this will keep upward pressure on prices.

If you’re thinking of buying a home, the good news is that you likely won’t have to deal with prices increasing as dramatically as they did during the pandemic. However, home prices are still expected to climb, just at a slower pace.

Getting into the market sooner rather than later could still save you money in the long run. Plus, you can feel confident that experts believe the value of your home will increase after you buy it.

Mortgage rates are expected to come down slightly

There is good news for both buyers and sellers: mortgage rates are expected to decrease slightly, according to Fannie Mae, the MBA, and NAR.

image.png
A small decrease in mortgage rates can make a significant difference in your monthly payments when you buy a home. For sellers, lower rates will entice more buyers into the market, which can help you sell your home faster and potentially for a higher price. Lower rates may also help you decide to sell if you’ve been hesitant due to current rates.

Home sales are projected to hold steady

The number of home sales in 2024 is expected to be about the same as last year, and may even increase slightly. Experts predict an increase in sales due to job growth, stable mortgage rates, and more homes being listed for sale.

image.png
“Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales,” says Lawrence Yun, Chief Economist at NAR.

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 into new homes.

Conclusion

If you have any questions or need help navigating the real estate market in the second half of 2024, contact meI can help you understand how these market trends might affect you and guide you through the buying or selling process.

Post a Comment