As home prices continue their upward trajectory nationwide, there remains a lingering concern among some individuals that prices might take a downward turn. A recent survey by Fannie Mae revealed that 24% of people fear a decline in home prices over the next 12 months. If you share this concern, let's delve into what industry experts project for home prices in 2024 to alleviate those fears.
Experts Anticipate Modest Price Increase
A comprehensive analysis of the latest home price forecasts from eight different sources indicates a positive outlook for 2024 (see graph below):
The blue bar on the left signifies that, on average, experts predict home prices will increase by over 2% by the end of the year—not decrease.
The consensus among experts is that home prices are unlikely to depreciate in 2024. Factors such as limited inventory and lower mortgage rates are fueling robust buyer demand, contributing to a continued upward trajectory in prices. Selma Hepp, Chief Economist at CoreLogic, affirms this perspective:
“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.”
For prospective homebuyers, this projection of home price appreciation is positive news. As a homeowner, witnessing an increase in the value of your property is advantageous. Home appreciation builds equity, solidifying homeownership as a sound long-term investment.
Moreover, if you're contemplating a home purchase, waiting may result in a higher cost later due to the anticipated price growth.
If concerns about a potential decline in home prices have crossed your mind, take solace in the consensus among experts—they anticipate an increase in prices for 2024. For personalized insights and guidance on navigating your local market, it's advisable to consult with a real estate agent who can provide valuable information based on your specific circumstances.
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