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

What To Expect for the Housing Market in the Second Half of 2024

As we move into the latter half of 2024, there are a few key trends to keep an eye on if you're thinking about buying or selling a home. Here’s a breakdown of what experts are forecasting for home prices, mortgage rates, and home sales.

Home Prices: A Moderate Climb Ahead

Home prices are projected to rise at a more moderate and predictable pace. This is great news for both buyers and sellers, as it indicates a stabilizing market. Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), sheds some light on why prices are still on the rise:

"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."

Even though inventory has improved compared to recent years, it remains low overall. This limited supply keeps upward pressure on prices. If you're considering buying, entering the market now might save you money down the road, as prices are not expected to drop but will rise more slowly.

Mortgage Rates: A Slight Dip Expected

One of the most encouraging updates is the forecast for mortgage rates. Predictions from Fannie Mae, the Mortgage Bankers Association (MBA), and NAR suggest that rates will slightly decrease. Even a small dip in mortgage rates can have a significant impact on your monthly payments if you're buying a home. For sellers, lower rates can attract more buyers, helping you sell your home more quickly and possibly at a higher price.

Home Sales: Steady As She Goes

The number of home sales in 2024 is expected to remain stable, with a slight uptick from last year. Experts predict around 5 million sales, a modest increase from the 4.8 million homes sold in 2023. Lawrence Yun, Chief Economist at NAR, explains:

"Job gains, steady mortgage rates and the release of inventory from pent-up home sellers will lead to more sales."

This means more people will be able to move, creating a vibrant and active market. If you’ve been contemplating a move, this could be a good time to do so.

Bottom Line

The second half of 2024 looks promising for the housing market with moderate price increases, slightly lower mortgage rates, and stable home sales. If you have any questions or need guidance navigating these trends, feel free to reach out. Let’s work together to make the most of these market conditions, whether you’re buying your dream home or selling your current one.

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