Housing Market Forecast: What’s Ahead for the 2nd Half of 2024

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 Moderately

Home prices are forecasted to rise at a more normal pace. The graph below illustrates the latest projections 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 has increased compared to the past couple of years, it remains low overall. This ongoing shortage of homes will continue to apply upward pressure on prices.

If you're considering buying, the good news is that prices won't be skyrocketing as they did during the pandemic. However, keep in mind that prices are not expected to drop; they will continue to rise, just at a slower pace.

Getting into the market sooner rather than later could save you money in the long run. Plus, you can feel confident that experts predict your home's value will grow after you purchase it.

Mortgage Rates Are Forecast To Come Down Slightly

One of the best pieces of news for both buyers and sellers is that mortgage rates are expected to come down slightly, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

When you buy, even a slight decrease in mortgage rates can significantly reduce your monthly payments. For sellers, lower rates attract more buyers, which can help you sell faster and potentially at a higher price. Additionally, it might encourage you to sell if you’ve been reluctant due to current rates.

Home Sales Are Projected To Hold Steady

For 2024, the number of home sales is expected to remain steady compared to last year, with a possibility of a slight increase. The graph below illustrates the 2024 home sales forecasts from Fannie Mae, MBA, and NAR, compared to the 4.8 million homes sold last year:

The average of the three forecasts predicts around 5 million home sales in 2024, marking a slight 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 decrease, home sales are projected to rise slightly this year compared to last year. This opens up more opportunities for people to move. Let's work together to ensure you’re one of them.

Bottom Line

If you have any questions or need help navigating the market, reach out.