In today’s real estate market, the fear of falling home prices is a concern shared by many. A recent survey conducted by Fannie Mae revealed that a staggering 24% of people believe that home prices will decline in the next 12 months. If you find yourself among those who share this concern, let’s take a closer look at what experts predict for home prices in 2024 and why you might not need to worry.
Expert Consensus: To alleviate your concerns, let’s turn to the insights of experts who closely monitor the housing market. We’ve compiled data from eight different sources to provide you with a comprehensive view of the situation.
According to the data (as shown in the graph below), the consensus among experts is clear. On average, they anticipate that home prices will increase by over 2% by the end of this year. In other words, they expect prices to rise, not fall.
Why Prices Are Expected to Rise: The optimistic outlook for home prices in 2024 is rooted in several key factors. It’s important to note that prices are unlikely to depreciate this year due to two main drivers: tight inventory and favorable mortgage rates.
Tight Inventory: Housing inventory remains limited, creating a situation where the demand for homes significantly outweighs the available supply. This scarcity naturally pushes prices upward.
Lower Mortgage Rates: The current trend of decreasing mortgage rates has spurred strong buyer demand. As Selma Hepp, Chief Economist at CoreLogic, explains, “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? So, what does all of this mean for you, especially if you’re considering buying a home? The experts’ consensus that home prices will rise in 2024 brings some positive implications:
Home Value Appreciation: As a homeowner, you want the value of your property to increase over time. This appreciation builds equity and makes homeownership a sound long-term investment.
Cost of Waiting: If you’re ready to become a homeowner, waiting could come at a cost. With prices expected to rise, delaying your purchase may mean paying more for the same property later.
Bottom Line: In conclusion, if the fear of falling home prices has been on your mind, it’s time to put those worries to rest. The consensus among experts is that home prices are likely to rise in 2024. However, if you have specific questions or concerns about the real estate market in your area, it’s always a good idea to consult with a knowledgeable real estate agent. They can provide you with localized insights and guidance to make informed decisions in today’s dynamic housing market.
Remember, the key to successful homeownership is staying informed and making decisions based on expert analysis and market trends. Don’t let the fear of falling prices deter you from taking steps toward your homeownership goals.