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

As we move into the 2nd half of 2024, here’s what specialists say you ought to expect for home costs, home mortgage rates, and home sales.

Home Prices Are Expected To Climb Moderately

Home prices are forecasted to increase at a more normal speed. The graph listed below shows the current 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), describes:

“One thing that seems to be quite solid is that home prices are going to continue to increase, and the factor is that we don’t have real estate stock.”

While stock is up compared to the last couple of years, it’s still low overall. And due to the fact that there still aren’t sufficient homes to go around, that’ll keep upward pressure on prices.

If you’re thinking of purchasing, the bright side is you will not have to handle costs skyrocketing like they did during the pandemic. Simply keep in mind, costs aren’t expected to drop. They’ll continue climbing up, just at a slower pace.

So, entering the marketplace faster rather than later on might still conserve you cash in the long run. Plus, you can feel great experts state 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 home mortgage rates are anticipated to come down a bit, according to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR (see chart below):

When you buy, even a small drop in mortgage rates can make a big difference in your month-to-month payments. For sellers, lower rates will bring more buyers back into the marketplace, which can help you sell quicker and potentially at a higher cost. Plus, it may assist you get off the fence, if you’ve been reluctant to sell due to today’s rates.

Home Sales Are Projected To Hold Steady

For 2024, the variety of home sales will be about the like last year and might even increase somewhat. The graph listed below compares the 2024 home sales projections from Fannie Mae, MBA, and NAR to the 4.8 million homes that offered last year:

The average of the three projections has to do with 5 million sales in 2024– a small increase from 2023. Lawrence Yun, Chief Economist at NAR, describes why:

“Job gains, constant home loan rates and the release of inventory from suppressed home sellers will cause more sales.”

With more stock offered and mortgage rates anticipated to go down, a couple of more homes are expected to be sold this year compared to in 2015. This suggests more individuals will have the ability to move. Let’s work together to make sure you’re one of them.

Bottom Line

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

The supply of homes for sale. Simply remember, rates aren’t expected to drop., even a little drop in home loan rates can make a big difference in your regular monthly payments. For 2024, the number of home sales will be about the exact same as last year and might even rise slightly. With more inventory available and mortgage rates expected to go down, a couple of more homes are anticipated to be sold this year compared to last year.