Real Estate Market Outlook for Second Half of 2024: What to Expect
As we head into the latter half of 2024, the real estate market continues to evolve, influenced by various economic factors. Whether you're thinking about buying, selling, or simply staying informed, here's what experts anticipate regarding home prices, mortgage rates, and home sales.
Home Prices: Moderate Increases Ahead
Home prices are expected to continue their upward trajectory, but at a more normalized pace compared to the rapid increases seen during the pandemic. According to the latest forecasts from seven leading industry sources, we should prepare for moderate price appreciation. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), points to a significant factor driving this trend: a persistent shortage of housing inventory.
"While inventory levels have improved from the sparse numbers we've seen over the past few years, the overall supply remains low. This shortage is a key reason why home prices are likely to keep rising," explains Lautz.
For potential buyers, this means that entering the market sooner rather than later could lead to substantial savings in the long run, as prices are not expected to decline but will continue to rise at a steadier rate. It's comforting to know that purchasing now is likely to be a financially sound investment over time.
Mortgage Rates: Slight Decrease Expected
In a welcome shift, mortgage rates are forecasted to decrease slightly, according to predictions from Fannie Mae, the Mortgage Bankers Association (MBA), and NAR. This reduction in rates can significantly affect your monthly payments, making home buying more accessible.
For sellers, lower mortgage rates mean that more buyers might be encouraged to enter the market, potentially speeding up the selling process and possibly even boosting the selling price. If you've been hesitant to list your property due to high rates, this upcoming change might be your cue to consider making a move.
Home Sales: Steady with Potential for Slight Increase
The number of home sales in 2024 is projected to hold steady compared to last year, with potential for a slight increase. Lawrence Yun, Chief Economist at NAR, suggests that "Job gains, steady mortgage rates, and the release of inventory from pent-up home sellers are expected to drive more sales."
This projection is supported by forecasts from Fannie Mae, MBA, and NAR, which average out to around 5 million home sales for the year—a slight rise from 2023. This stability in home sales suggests a resilient market, offering opportunities for both buyers and sellers to achieve their real estate goals.
A Favorable Market for Movement
As the market conditions of 2024 unfold, the outlook is generally favorable for those looking to buy or sell. With home prices expected to grow at a moderate pace, mortgage rates predicted to drop slightly, and sales holding steady, now might be an excellent time to consider your next steps in the real estate market.
As your trusted real estate professional, I'm here to help you navigate these dynamic conditions. Whether you're planning to buy a new home or thinking about selling your current property, leveraging my expertise and local market knowledge can ensure a successful and smooth transaction. Let’s work together to make your real estate goals a reality this year!
