The upward trend in home prices in the US is expected to continue well into 2024. The current year marked a significant increase in property prices, but industry analysts predict that all markets will log a growth in price next year.
This will particularly benefit home sellers. If you want to sell or buy a home in 2024, now is the time to begin your research. It will help you make informed decisions to secure the home of your dreams. Here are some expert housing market predictions that can help in the process.
Consistent Increase in Home Value Projected
The latest industry forecasts show that a slightly smaller increase in price will be seen towards the end of 2024. According to the Mortgage Bankers Association, while 2023 marked a 1.5% increase in price, they expect 2024 to conclude with a 1.1% growth in home values.
Forecasts by the National Association of Realtors, on the other hand, show that 2023 marked only a 0.1% increase in existing home prices compared to an estimated 0.7% in 2024. Although there is not much movement in the price of existing homes for sale, the prices for new homes this year show a decline of -5.9%. The scenario is expected to change in 2024 when new homes should mark an annual upward trajectory of 3.5%.
Contrary to some people’s expectations, the market prices for existing homes didn’t get a significant decrease in 2023. This is due to the scarcity of available homes and growing demand from prospective buyers. The supply and demand imbalance remains the crucial factor that exerts continuous upward pressure on prices.
Do Forecasts Show Increase in Sales for 2024?
Based on the MYKCM analysis, 2023 has not seen much movement in the home sales market compared to previous years. However, experts expect that this will change in 2024. They anticipate a modest increase in sales next year, offering a positive outlook for the housing market.
Now that business activities are more stable, forecasts indicate a more dynamic housing sector. Economic indicators and social trends are still key factors, with people continuing to relocate due to expanding families, marriage, divorce, new jobs, etc. The trend is expected to continue in 2024 and beyond, while a potential reduction of mortgage rates might further stimulate activity in this market.
The above predictions are more or less on the same level as the National Association of REALTORS’®, which is expecting a further boost in sales. Their analysis shows that home sales value in 2024 will increase to close to a million dollars. The Mortgage Bankers Association foresees home sales to reach $5.2 million in 2024.
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