Experts Project Home Prices Will Increase in 2024
While there is a national trend of increasing home prices, some individuals remain concerned about a potential decline. A recent survey by Fannie Mae reveals that 24% of people expect home prices to decrease in the next 12 months, reflecting a common apprehension.
To help ease that concern, here’s what experts forecast will happen with prices this year.
Experts Project a Modest Increase
Check out the latest home price forecasts from eight different sources (see graph below):
The expectation is rooted in the tight inventory and lower mortgage rates contributing to robust buyer demand. Selma Hepp, Chief Economist at CoreLogic
“With mortgage rates dropping, demand for homes in early 2024 is likely to be strong and will again put pressure on prices, similar to trends observed in early 2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”
What Does This Mean for You?
If you’re contemplating buying a home, the forecasted increase in home prices is positive news. Homeownership becomes an even more valuable investment as the appreciation in your house’s value builds equity over time. Additionally, the projected home price appreciation implies that delaying a home purchase may result in higher costs later. In essence, if you are ready, willing, and able to buy, waiting might mean a more expensive investment down the line.
In conclusion, if concerns about a potential decline in home prices linger, rest assured that many experts believe prices will actually rise this year. If you have questions or uncertainties about local price trends, let’s connect.