What Lies Ahead for Home Prices in 2024?
Amidst the conflicting media narratives surrounding the housing market and economic landscape, one question looms large: What can we expect for home prices this year? While peering into the crystal ball of the future remains elusive, we can strive to offer a well-informed perspective grounded in data, insights, and expert opinions.
The past year has been a rollercoaster ride for the housing market, marked by twists and turns. Adapting to such changes can feel like navigating a maze, but here’s what you can share with anyone pondering this question.
It’s still very much a sellers’ market. Why? Because the dynamics of supply and demand continue to exert their influence, with a persistently low inventory of homes available for sale. Consequently, this translates to sustained upward pressure on home prices.
Mike Simonsen, President and Founder of Altos Research, succinctly captured the sentiment: “We’re going into 2024 with slight home-price gains, somewhat easing inventory constraints, slightly increasing transaction volume… All in all, things are looking up for the U.S. housing market in 2024.”
Moreover, insights from the Home Price Expectation Survey by Fannie Mae, incorporating forecasts from a myriad of economists, real estate experts, and market strategists, paint a picture of incremental yet consistent growth in home prices annually until 2028.
While the rate of appreciation may not match the highs of recent years, the key takeaway is that prices are projected to ascend, not plummet, for at least the next five years. In 2024, the forecast suggests an approximate 2.6% increase, dispelling concerns of an imminent downturn in home prices.
For those fearing a market downturn, this forecast offers reassurance. While prices may fluctuate based on local conditions, the consensus among experts is that they will continue to climb nationwide, albeit at a more sustainable pace in line with historical norms.
