Real Estate Market Forecast 2024

As we enter the second half of 2024, there’s one big question on everyone’s minds: what’s ahead for the real estate market in 2024?

Will Home Prices Go Up or Down?

Over the past year, there’s been a lot of mixed information about what will happen with home prices in the near future. Homes are staying on the market longer, and there have been price reductions for active listings in the past few months.

So, what does the future hold for home prices?

The latest expert projections predict that home prices will continue to climb moderately for most markets around the country.

Why are home prices still going up? It all comes down the fact that there isn’t enough housing inventory. Even though there are more homes on the market, it’s still not enough to meet today’s buyer demand. This will keep pushing prices up slowly.

What’s Going to Happen with Mortgage Rates?

If you are waiting for rates to go back down to where they were in 2020-2022, that may never happen again.

But there is good news: experts project mortgage rates should come down later this year as inflation continues to cool. Remember, you can always negotiate a rate buydown with the seller to get an even lower rate.

Will the Housing Market Crash This Year?

With a lot of confusion and uncertainty surrounding the housing market, some people are raising concerns that we’re destined for a repeat of the crash we saw in 2008. But in truth, today’s market is nothing like 2008.

Ultimately, it comes down to supply and demand.

As Business Insider says:

“Though many Americans believe the housing market is at risk of crashing, the economists who study housing market conditions overwhelmingly do not expect a crash in 2024 or beyond.”

When the housing market crashed in 2008, there was an oversupply of homes. Currently, we have an under-supply. So, rest easy. There won’t be a crash.

What does this mean for you in 2024?

The 2024 market underwent a major shift as economic uncertainty and higher mortgage rates reduced buyer demand, slowed the pace of home sales, and moderated home prices.

But what about the rest of this year?

There is a projected rise in homes on the market and a decline in mortgage rates so long as inflation continues to ease, we’re heading for a more stable and predictable market than we’ve seen in the last few years.

This is good news whether you are looking to buy or sell a home or invest in real estate!

Hopefully the rest of the year we will see a steady decline in mortgage rates and a moderate, more normal climb in home prices and sales.

My team and I would be honored to help you talk through real estate strategy or figure out your purchasing power in this market. Reach out if we can assist in any way.