Hello dear readers! Can you believe we’re halfway through 2024? It’s been an interesting year so far, with interest rates still in the 7% range and such a low inventory of houses for sale, it’s a tough landscape for both buyers and sellers. As we move into the second half of 2024, here’s what the experts are expecting 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 reason for continued appreciation? The low 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 considering buying, the good news is you won’t have to deal with prices skyrocketing like they did during the pandemic. Just keep in mind that prices are not expected to drop. They will continue climbing, 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 Slightly
One 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 and the Mortgage Bankers Association.
When you’re buying, even a small drop in mortgage rates can make a big difference in your monthly payments. Plus, it may help you get off the fence if you’ve been holding back for interest rates to drop.
Home Sales Are Projected To Hold Steady
For 2024, the number of home sales will be around the same as last year. The average forecast 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, people will be able to move. It’s more important now than ever to hire a great Realtor, like yours truly, to help you buy a new home! Let’s get together and discuss your plans!