As we enter the latter part of 2024, here is what industry experts are predicting for housing costs, mortgage interest rates, and property transactions.

Home Prices Are Expected To Climb Moderately

Home prices are expected to increase at a more typical rate. The graph below displays the most recent predictions from seven reputable sources in the industry.

Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR), attributes the ongoing appreciation to the limited supply of homes available for sale.

““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.”
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— Jessica Lautz, Deputy Chief Economist at the National Association of Realtors (NAR)

Inventory has increased compared to the past few years, but it remains relatively low overall. Due to the insufficient number of homes available, prices are likely to continue increasing.

If you're considering a purchase, the positive update is that you won't face the steep price increases seen during the pandemic. Keep in mind, though, prices are projected to remain steady or rise gradually in the future.

Getting into the market sooner rather than later could potentially lead to long-term cost savings. Additionally, experts suggest that your home is likely to increase in value after your purchase.

Mortgage Rates Are Forecast To Come Down Slightly

According to Fannie Mae, the Mortgage Bankers Association (MBA), and NAR, mortgage rates are forecasted to decrease slightly. It is promising news for both buyers and sellers.

When you purchase a property, a slight decrease in mortgage rates can significantly impact your monthly payments. For those selling, reduced rates will attract more buyers to the market, potentially leading to a quicker sale at a better price. Additionally, if you've been hesitant to sell because of current rates, this change could encourage you to take that step.

Home Sales Are Projected To Hold Steady

In 2024, the projected number of home sales is expected to remain similar to last year or possibly experience a slight increase. The comparison graph below illustrates the 2024 home sales forecasts by Fannie Mae, MBA, and NAR in relation to the 4.8 million homes sold last year.

The average of the three forecasts for 2024 is approximately 5 million sales, slightly higher than in 2023. Lawrence Yun, Chief Economist at NAR, provides insight into the reason behind this.

“Whatever it is, the way you tell your story online can make all the difference.”

— Lawrence Yun, Chief Economist at NAR

With an increase in inventory and anticipated lower mortgage rates, more homes are projected to be sold this year compared to last year. This creates more opportunities for people to make a move. Let's collaborate to ensure you're part of this trend.