Expert Predictions for 2024 Home Prices

Predicting the real estate market is a challenge, but there are a few indicators market watchers look for which point to slight appreciation in housing this year.

While national home prices continue to rise, some fear prices might actually come down in the coming months. According to a recent Fannie Mae survey, 24% of respondents believe that home prices will decline over the next 12 months. Almost one out of four people are concerned about housing prices and wondering whether they should wait to buy. You might be, too.

To alleviate these concerns, experts offer insights into the expected trajectory of prices this year.

The latest home price forecasts from eight different sources are in the graph below.

The blue bar on the left shows that on average, experts think home prices will increase by a little over 2% by the end of the year.

Despite some worries, prices are not likely to depreciate in 2024. Tight inventory and decreasing mortgage rates are identified as key factors that will contribute to sustained buyer demand and, consequently, a continued upward pressure on prices.

Selma Hepp, Chief Economist at CoreLogic, explains:

“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 early2023 . . . Most markets will continue to reach new home price highs over the course of 2024.”

What Does This Mean for You?

For potential homebuyers, the forecast is good news, as experts suggest that home prices will rise this year. When you become a homeowner, you want the value of your house to go up. That appreciation is what builds equity and makes homeownership such a good investment over time.

Waiting to buy may result in higher costs later on, so if you're ready, willing, and able, now might be a good time to consider purchasing a home.

Got questions? Happy to answer them. Let’s connect.

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